Dubai landlords are introducing flexible lease terms, rent-free periods and staggered payment plans to retain tenants amid rising supply.
Dubai landlords are enhancing leasing terms and investing in property refurbishments to keep prime units in high demand, as tenants place greater emphasis on value, affordability and flexibility than in previous years.
Real estate executives say the launch of the Smart Rental Index in early 2025 has helped tenants and landlords negotiate renewals more effectively.
“Tenant behaviour has become increasingly value-driven, with households placing greater emphasis on affordability, quality and flexibility than in previous years. This shift has led to clearer differentiation between upgraded, well-located units and older, non-enhanced stock. In response, a growing number of landlords have adopted proactive asset management strategies — including refurbishment, furnishing and more flexible leasing terms — helping to sustain rent resilience and maintain strong demand for prime-quality properties,” analysts at global real estate consultancy Colliers said.
Dubai landlords are increasingly enhancing leasing terms to attract tenants in a more competitive market. Many are moving away from traditional one- or two-year contracts and offering six- or nine-month options, appealing particularly to expatriates and professionals seeking shorter commitments due to job mobility or changing family needs. Some are also introducing rent-free periods or staggered payment schedules, giving tenants greater financial flexibility, especially during the initial months of occupancy.
At the same time, landlords are upgrading the overall quality and appeal of their properties to justify competitive leasing terms. Refurbishing older units, upgrading appliances, modernising interiors and offering fully furnished options have become more common. Previously outdated properties are being repositioned as move-in-ready homes, delivering stronger value to tenants.
According to analysts at global real estate consultancy Colliers, around 78,300 apartments and 14,800 villas are expected to be handed over this year, compared with 37,950 apartments and 9,700 villas last year — a significant increase in new supply.
In 2025 and into 2026, Dubai’s rental market has shifted from the high-growth phase seen between 2022 and 2024 to a more stable and moderated expansion. While rents are still rising overall, growth has slowed, particularly in high-demand areas with limited supply. This marks a contrast to the double-digit increases of previous years and reflects a maturing market where supply and demand are gradually rebalancing.
“Market normalisation was further supported by the introduction of the Smart Rental Index, which improved transparency around rental benchmarks and helped anchor expectations during renewal negotiations,” analysts said.
Overall, the 2025 rental market remained underpinned by solid underlying demand, while performance increasingly shifted toward a more sustainable, quality-led trajectory.
