Dubai tenants find it cheaper to stay in existing apartments as rents soar

Dubai tenants find it cheaper to stay in existing apartments as rents soar

Tenants in Dubai are increasingly opting to stay put and renew their existing apartments rather than moving to a new home following the surge in rents in the past year.

As a result of growth in Dubai's population, rental inventory is also severely under pressure, with occupancy levels reaching multi-year highs across the emirate.

"Dubai's recent population growth continues to put pressure on today's rental inventory, and we see rapid price increases in the most popular areas, with occupancy across Dubai at a five-year high.

"This is welcome news to investors but squeezed tenants have to look further afield for better value. Overall transiency in the rental market has dropped significantly as tenants look to stay put and renew rather than face today's prices," said Richard Waind, group managing director of Betterhomes.

In April 2022, the emirate's population crossed the 3.5 million mark for the first time, an increase of over 100,000 since 2020.

Prathyusha Gurrapu, head of research and advisory at Core, a real estate consultancy, said the rental market is witnessing steeper rises compared to the sales price, increasing by over 25 per cent. But she pointed out that such a sharp rise in rents is not sustainable.

In addition, tenants also choose to