Dubai, UAE – May 19, 2025
Despite successive rent hikes, a significant number of Dubai tenants are choosing to renew their leases rather than seek new accommodations, citing cost-effectiveness and market dynamics as primary reasons.

Feedback from leasing agencies and property portals indicates that renewing existing rental contracts remains more economical for tenants, even with increases exceeding 10%. The expenses associated with moving—such as agency fees, relocation costs, and utility setups—often outweigh potential savings from new leases.

Rashed Hareb, CEO of Rentify, notes that nearly 90% of tenants on their platform opt for renewals, highlighting the financial and logistical challenges of relocating.

Six months into the implementation of Dubai's digital Rental Index, the rental landscape continues to evolve. The Index's star rating system allows landlords of newly completed properties to command higher rents, contributing to a rental premium in the market. Consequently, tenants find that staying put is often the more financially prudent choice.

With tens of thousands of new residential units expected to enter the market in the coming months, there is anticipation about potential shifts in rental dynamics. However, current trends suggest that landlords maintain leverage, with high demand and limited negotiation room for new listings.