As new properties enter the Dubai rental market, tenants in older buildings may have the opportunity to negotiate rents. Real estate experts suggest that owners of older buildings may need to offer incentives to maintain occupancy, especially in areas seeing significant new supply in 2025.
While rents in Dubai are expected to rise by around 10% in 2025, the increase will likely be slower than in previous years. With more new properties coming to market, some areas could see rents stabilize or slightly decline particularly in non-prime locations like International City and Al Quoz.
Source: Blooming Tours
Long-term tenancies, more cheque payments and property renovations are expected to shape the tenant-landlord dynamic. As tenants seek stability, landlords may offer longer leases to ensure steady income. In certain cases, landlords may also adjust rental rates or accept more flexible payment terms to attract new tenants.
Despite overall rent increases, areas with high new supply such as Jumeirah Village Triangle and Dubai Land Residential Complex may experience localized rent declines due to oversupply and limited demand.