Dubai Tenants Move Homes As New Leases Offer Rents Up To 15% Lower

(MENAFN- Khaleej Times) Dubai tenants are increasingly choosing to move homes rather than renew existing leases, as new rental contracts offer savings of up to 15 per cent, according to an analysis of Dubai Land Department data by fäm Properties.

New leases exceeded renewals by 633 contracts in July and 2,139 in August, marking the first time new contracts have outnumbered renewals in any month since the dataset began in January 2023.

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The turnaround follows 36 consecutive months in which renewals outnumbered new leases, suggesting tenants are becoming more willing to move as rents soften and better-value options emerge, particularly across mid-market and prime districts.

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The trend also follows a sharp rise in people looking for new homes. reported earlier this month that Dubai rental searches jumped 44 per cent year-on-year during the summer, as residents explored everything from more affordable communities to larger homes and premium neighbourhoods.

New-lease rents down 15.3%

Firas Al Msaddi, founder and CEO of fäm Properties, said rents on new leases for the same building and unit type are now 15.3 per cent lower than in January, while renewal rents have declined by only around 1 per cent.

“Previously, it was in the interests of tenants to stay where they were, especially as moving home can be challenging in various ways,” Al Msaddi said.

“But that has all changed because tenants can now move to a comparable apartment for less than a renewal would cost.”

JVC, Business Bay and Dubai Marina see tenants moving

The shift is particularly visible in some of Dubai's most popular residential communities.

In August, new leases outnumbered renewals by 1,102 contracts in Al Barsha South Fourth, which includes Jumeirah Village Circle (JVC), according to the fäm analysis.

Business Bay recorded 609 more new leases than renewals, followed by Al Merkadh with 598, Dubai Marina with 564 and Downtown Dubai with 342.

These locations also featured prominently in tenants' online searches during the summer.

Bayut data previously reported by Khaleej Times showed JVC was the most searched community for rental apartments between June 1 and August 25, followed by Business Bay, Dubai Marina, Arjan and Downtown Dubai.

JVC also offered a comparatively lower entry point, with a median asking annual rent of around Dh70,000, compared with Dh99,900 in Business Bay and Dh120,000 in Dubai Marina.

The latest DLD registrations suggest that at least some of the surge in summer search activity is now translating into tenants actually moving homes.

Affordable areas show different trend

In more affordable districts including International City, Jebel Ali and Dubai Silicon Oasis, renewals continued to outnumber new leases in August.

The earlier Bayut data also showed affordability remained a major consideration for tenants, alongside location, space and lifestyle.

For villas and townhouses, Damac Hills 2 attracted the highest rental search interest, followed by Mirdif, Damac Lagoons, Arabian Ranches 3 and Dubai Hills Estate.

Median asking annual rents ranged from around Dh110,000 in Damac Hills 2 to Dh385,000 in Dubai Hills Estate, illustrating the wide range of budgets being considered by families searching for homes.

Leasing activity remains steady

Despite tenants becoming more willing to move, Dubai's overall leasing activity has remained relatively stable.

New-lease contracts between January and August were only 1 per cent below the same period in 2025, while renewals were also down 1 per cent.

Around 14,100 new leases were registered in July and 15,600 in August, with both months recording higher levels than a year earlier.

Apartment rents ease from peak

The median rent for new apartment leases stood at Dh94.6 per square foot in August, down 8.3 per cent from its October 2025 peak of Dh103.1 per square foot.

Al Msaddi said tenants are continuing to sign leases for better-quality and better-located properties, helping overall averages remain relatively resilient even as the rent for individual apartments declines.

Landlords who adjusted to changing market conditions were able to secure tenants, while others saw renters move elsewhere to take advantage of lower prices and other benefits, he said.

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