Dubai: Why more tenants will move out from rented properties in the coming months?

Dubai: Why more tenants will move out from rented properties in the coming months?

Published: Sun 26 May 2024, 1:25 PM Last updated: Sun 26 May 2024, 4:25 PM

Dubai's real estate market is expected to see a rise in tenants moving out of their rented properties in the coming months. This trend is driven by several factors, including the easing of rent hikes in certain areas, an updated Rera rental calculator allowing for potential rate increase, and an increased supply of new residential units.

However, some analysts and industry executives say that the high cost of moving could also prompt other tenants to reconsider relocating.

Rent renewals in Dubai saw a 12 per cent year-on-year increase in the first quarter of 2024, with numerous tenants consenting to above-average rental hikes.

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“This reflects tenants’ desire to uphold positive landlord relations and circumvent the risks, costs and inconveniences associated with relocating, potentially settling for similar properties at even higher rates. However, this trend may be reversed after the update of the Rera rental calculator. The revised calculator now provides a more accurate reflection of open-market pricing, enabling landlords to implement significant rent hikes at a time when market rates are finally starting to ease,” said Asteco analysts.

“Going