Dubai’s rental market is showing signs of a notable change, with more tenants choosing to relocate as new lease prices fall below renewal rates.
Data from Dubai Land Department tenancy registrations analysed by fäm Properties shows that new rental contracts surpassed renewals by 633 in July and by 2,139 in August. It marked the first time since records began in January 2023 that new leases exceeded renewals in a month.
The change follows a 36-month stretch in which renewals consistently remained ahead of new leases.
The latest movement has been particularly visible in mid-market and premium neighbourhoods, where tenants are finding that moving into another apartment can now cost less than staying put.
The growing price gap appears to be a key factor. New leases for comparable units in the same buildings were about 15.3% cheaper in August than in January, while renewal rents had fallen by only around 1%.
That difference has altered the calculation for tenants who had previously preferred to avoid the disruption and expense associated with moving.
August figures also showed a strong preference for switching in several major Dubai communities. New leases exceeded renewals by 1,102 contracts in Al Barsha South Fourth, which includes Jumeirah Village Circle, followed by Business Bay with 609, Al Merkadh with 598, Dubai Marina with 564 and Downtown Dubai with 342.
The pattern was different in some lower-cost areas. Renewal contracts continued to outnumber new leases in locations including International City, Jebel Ali and Dubai Silicon Oasis.
Despite the change in tenant behaviour, overall leasing activity has remained relatively stable. New lease registrations during the first eight months of the year were about 1% lower than during the same period last year. However, July recorded roughly 14,100 new leases and August around 15,600, both above the corresponding figures from the previous year.
Renewals were also approximately 1% lower over the January-August period.
Apartment rents have eased further from their previous highs. The median rent for new apartment leases stood at AED 94.6 per square foot in August, down 8.3% from the October 2025 peak of AED 103.1.
The figures suggest that the market is not necessarily seeing a collapse in leasing demand. Instead, tenants appear to be becoming more selective, with higher-quality properties in stronger locations continuing to attract renters even as prices for individual apartments soften.
For landlords, the changing balance creates a fresh incentive to align asking rents with current market conditions. For tenants, meanwhile, the widening gap between renewal and new-lease prices has made moving home a more financially attractive option.
