Navigating the Rising Rent Landscape in Dubai

As rental prices in Dubai surge, finding affordable housing has become increasingly challenging for many residents, except for the wealthiest. Fortunately, there are several strategies available to help navigate this difficult market.

Understanding the Rent Hikes

Rental increases predominantly affect new leases. This is a significant point because many landlords take this opportunity to raise rents substantially, especially after a government-imposed rent freeze during existing leases. Consequently, prospective tenants may discover that new rental agreements often come with substantially higher price tags.

To combat these sharp increases, the Real Estate Regulatory Authority (RERA) previously introduced a rental calculator. More recently, the Dubai Land Department upgraded the Smart Rental Index, which curbs excessive rent hikes by providing a structured framework for both landlords and tenants. This tool has helped mitigate arbitrary increases that unscrupulous landlords might attempt.

Legal Safeguards Against Rent Increases

Despite these regulatory measures, some landlords employ various tactics—like reclassifying properties, upgrading units, or employing reletting strategies—to justify significant rent increases. Mario Volpi, senior vice president at Allegiance Real Estate, notes that while the Smart Rental Index clarifies tenant and landlord rights, disputes often arise. However, many disagreements can be resolved quickly once one party refers to this index.

Landlords may sometimes argue that renovations or improved property ratings warrant a higher rental rate. In cases where these claims are substantiated, such increases may be permissible. However, tenants have the right to challenge unjustified hikes.

Data-Driven Negotiation Strategies

Today’s tenants are more informed about their rights and increasingly utilize the rental index calculator, alongside dispute channels, to counteract excessive rent increases. According to Prathyusha Gurrapu, head of research at Cushman & Wakefield Core, this trend marks a shift in tenant empowerment, allowing them to challenge unreasonable landlord demands effectively.

In the third quarter of 2025, Dubai’s asking rents rose by 4.7%, mirroring rates from previous quarters. Notably, apartment rentals have surged at a rate of 5.6% annually compared to 3.5% for villas, maintaining a trend that has persisted since 2024.

Negotiation Tactics to Consider

When negotiating rent, tenants can employ a few specific strategies that may lead to better outcomes:

1. Utilize Market Data: Always reference the RERA calculator before committing to a rental agreement. While offering more cheques or an upfront payment can be helpful, data comparison is crucial.

2. Propose Longer Lease Terms: If planning to stay put for an extended period, suggesting a lease term of 18 to 24 months can appeal to landlords, as it offers them security.

3. Explore Stable Communities: It can be beneficial to look for neighborhoods where rents are stabilizing, such as Jumeirah Village Circle, Al Barsha, and The Greens—areas where landlords may be more willing to adjust rent demands to attract tenants.

Volpi emphasizes the importance of having a copy of the Smart Rental Index during negotiations. This index acts as a legal benchmark, empowering tenants with valuable evidence should disputes arise. Gathering comparable listings can also strengthen negotiation stances.

Additional Suggestions for Tenants

Tenants can further minimize rent increases through alternative proposals:

• Suggest Phased Increases: Instead of a sudden rent jump, propose a gradual increase over time.
• Offer Proactive Payments: If feasible, offering upfront payments in exchange for lower rents can yield benefits but should always be documented in the formal rental agreement, or Ejari contract.

Tenants should also be prepared to take their cases to the Rental Dispute Settlement Committee if necessary. Remaining professional and assertive can often lead landlords to settle disputes quickly, particularly when armed with the relevant data.

The Broader Context of Dubai’s Rental Market

Despite rising rental prices, Dubai remains competitively priced compared to other global cities like London and New York. According to Gurrapu, residents enjoy larger unit sizes and various housing options at different price levels. Although continuous rent increases may narrow the price gap with these cities, Dubai is likely to maintain its relative affordability.

Experts agree that while certain high-end segments may match global benchmarks, average rents across the city remain lower than in major capitals. Additionally, strong global appeal owing to no income tax, modern housing options, and good living standards keeps attracting talent and long-term investment to Dubai.

In summary, while tenants in Dubai are facing a challenging rental market, informed decision-making and smart negotiation tactics can significantly alleviate some of the financial pressure caused by rising rent prices.