How can tenants in Dubai negotiate lower rents?

Surging rents in Dubai have squeezed all but the wealthiest of residents.

But there are tips and tactics to avoid paying above the odds, experts say.

Most of the sharp increases in house rents now concern new leases, when landlords have the opportunity to hike prices that are rent-controlled by the government during leases.

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The introduction of the Real Estate Regulatory Authority’s calculator in the past and the upgrade this year to the Dubai Land Department’s Smart Rental Index has constrained “arbitrary increases from rogue landlords”.

But some use legal moves such as reclassification, reletting tactics and unit upgrades that can have the same effect, according to veteran broker Mario Volpi, senior vice president at Allegiance Real Estate.

“How the Smart Rental Index has helped is that it sets clear legal bands and communicates clearly what both parties can do, especially landlords at the time of renewal. It also allows a path for tenants to contest unlawful rises. Many disputes end quickly once the index result is shown,” he said.

“Sometimes landlords will push back by arguing that renovations or improved building ratings justify higher market comparisons. If legitimately certified and reflected in the market, that’s permitted; if not, tenants can challenge it.”

While landlords may seek to push rents higher, tenants today are far more aware of their rights and are increasingly using the rental index calculator and dispute mechanisms to challenge excessive rises, said Prathyusha Gurrapu, head of research at Cushman & Wakefield Core.

Dubai’s asking rents grew by 4.7 per cent in the third quarter of 2025, showing little change from the previous quarter, according to data from property consultancy ValuStrat.

Apartment rents continued to outpace villas, a trend persisting since 2024, with annual increases of 5.6 per cent and 3.5 per cent, respectively, the data revealed.

Negotiation tactics

There are a few tactics that a tenant can use such as the use of data, information, timing and above all, negotiation, to beat rent increases.

“Always check the Rera calculator before signing. Offer more cheques or one upfront payment to negotiate a lower annual rent,” said Farooq Syed, chief executive of Springfield Properties.

“Request a longer lease term [18 to 24 months] if you plan to stay. Explore communities where rents are stabilising now such as Jumeirah Village Circle, Arjan, The Greens and Al Barsha, where landlords are adjusting asks to attract tenants.”

Mr Volpi recommended tenants to look up the DLD’s Smart Rental Index and where possible have this printed out or take a screenshot.

It is your legal benchmark and the single most persuasive tool in negotiation. Make sure you understand the results before any negotiation, he said.

Collect comparable listings and recent transactions (in the same building or stock). Show the landlord evidence if their proposed increase is out of touch with the market, he said.

“Perhaps offer a longer lease length, maybe two or more years for a smaller increase. Landlords value security, so trading a small concession for stability often wins,” Mr Volpi suggested.

“Propose phased increases or a payment plan, ask for six months to adjust rather than a sudden jump. Many landlords accept staged rises.

“Pay more months upfront [if you can and it’s safe], some owners accept one cheque earlier in exchange for a lower headline increase. Be cautious though and insist this is reflected in the Ejari/contract. Don’t pay in cash off-books.”

Mr Volpi also asked tenants to know their rights and be prepared to file a case at the Rental Dispute Settlement Committee. Always be polite but firm, and explain that you will check what the DLD Smart Rental Index says and if needed you can escalate. Many landlords settle once put on notice, he said.

“Consider a broker with market muscle. Experienced agents can sometimes secure renewals that in-house tenants can’t because they control the resale pipeline and know buyers,” he added.

Will Dubai rents surpass London and New York?

Overall, Dubai rents remain competitively priced compared to global cities, offering larger unit sizes and a wider range of product options across different price points, Ms Gurrapu said.

While sustained rent growth may narrow the gap with markets like London and New York, Dubai is still expected to retain its relative affordability in the near term, she said.

Agreeing with her, Mr Syed cited how Dubai remains more affordable overall than London and New York, even after several years of strong growth.

“In select ultra-prime segments – branded residences and waterfront towers – rents can match or exceed global benchmarks, but across the city, average rents are well below those capitals,” he said.

“This affordability, alongside modern housing stock, higher space standards and no income tax, is a key reason why Dubai continues to attract global talent and long-term investment.”

Mr Volpi said there are some luxury Dubai locations that already match or exceed parts of London or New York on a per square foot headline basis, but global cities are not directly comparable.

Different cities have real estate that differ in unit sizes, the currencies, their taxes and lifestyle premiums. Expect selective parity in some trophy assets, but not wholesale overtaking, he explained.

“London and New York have much higher average rents in core prime locations when adjusted for unit size and currency volatility. Dubai’s high-end locations can obviously compete at the top end, but the average across a city is driven by broader economic structures,” he said.

“Also, market context matters; New York and London rents are supported by very different labour markets, employment laws and housing stock constraints. Dubai can match headline apartments but not the entire market.”