In response to increasing demand and escalating rental prices, landlords in Dubai are offering more flexible payment terms and issuing fewer eviction notices, according to industry experts.
“With demand at an all-time high and rental prices rising steadily, many landlords are showing flexibility by accommodating various payment arrangements,” stated Lewis Allsopp, Chairman of Allsopp & Allsopp. The city's rental demand has surged, driven by over 140,000 new residents in the first 11 months of 2024, many of whom seek rental properties. To foster transparency in the rental market, the Dubai Land Department introduced the Rera Rental Index, which informs both landlords and tenants of their rights concerning rent adjustments and eviction protocols.
Data from Allsopp & Allsopp’s third-quarter report of 2024 indicates that tenants increasingly prefer to pay rent in 6-8 installments, showcasing landlords' adaptability to support affordability amidst rising rents. Single or bi-annual payments have become challenging for many tenants due to high rent levels, which have reached near record highs.
CBRE, a leading real estate consultancy, reports that rental rates have continued their upward trajectory throughout the first nine months of 2024, with apartment rents increasing by an average of 19% and villa rents by 13%. Year-on-year, rental contracts have grown, fueled by a 14% rise in renewal registrations, though new registrations have slightly declined.
Zhann Jochinke, Chief Operating Officer at Property Monitor, noted that tenants are opting to remain in their current homes as landlords provide greater payment flexibility and reduce eviction notices. “While traditional one-cheque payments can offer better deals, tenants increasingly prefer multi-cheque options,” said Jochinke. “It is becoming more common for landlords to accept six or even twelve cheques, particularly where there is a strong, cooperative relationship with tenants.”
This trend highlights Dubai's evolving rental market, where flexible payment terms are increasingly the norm, accommodating a broader range of tenant financial needs while fostering stable tenant-landlord relationships.
