Dubai, UAE – In response to the intense demand for rental properties and rising rent prices, landlords in Dubai are adopting more flexible payment terms and reducing eviction notices, industry experts report. With a record number of new residents entering the city and rental prices reaching near all-time highs, landlords are increasingly allowing tenants to pay rent in multiple installments, easing the financial burden on tenants.
According to Lewis Allsopp, chairman of Allsopp & Allsopp, demand for rentals has skyrocketed, with over 140,000 new residents arriving in the first 11 months of 2024. “The majority are looking for homes to rent. To promote transparency and fairness in the rental market, the Dubai Land Department has introduced the Rera rental index, empowering landlords and tenants alike with information on rights related to rent increases and eviction notices,” Allsopp said. He also noted that recent data from the third quarter of 2024 shows a significant shift, with many tenants opting to pay rent in 6 to 8 cheques, reflecting a move towards affordability and flexibility.
The trend comes amidst a consistent increase in rental rates, with real estate consultancy CBRE reporting a 19% increase in average apartment rents and a 13% increase in average villa rents in the first nine months of 2024 compared to the previous year. While new rental contract registrations showed a slight decline, the number of renewal contracts surged by 14%, indicating that tenants are increasingly choosing to renew leases instead of moving.
Zhann Jochinke, COO of Property Monitor, pointed out that the traditional “one cheque” payment model has become challenging for tenants due to high rents. “Most tenants now prefer the multi-cheque option, which landlords are also willing to accept, especially when there’s a trusting relationship with the tenant,” he said. It is now common for landlords to accept payments spread across six to twelve cheques, offering tenants more flexibility in managing rent payments.
The Dubai rental market continues to evolve with landlords’ willingness to adjust to high demand and growing tenant expectations for more accessible payment structures, marking a significant shift towards a more tenant-friendly approach in the city’s competitive rental landscape.