RENEWALS STILL CHEAPER THAN NEW LEASES FOR DUBAI TENANTS

Tenants in Dubai are choosing to renew their annual rental contracts where possible — even when landlords impose successive rent increases, sometimes 10 per cent or more.

- BY MANOJ NAIR Business Editor

Based on the feedback provided by leasing agencies and property portals, a majority of tenants believe renewing will cost them less than moving to a new rental home, despite the growing supply of brand-new apart ments in Dubai.

'NOT WORTH THE HASSLE'

“Moving is expensive [for tenants] between [paying] agency fees, the movers, landlord deposits, and setup costs,” said Rashed Hareb, co-founder and CEO of Rentify, the proptech platform that offers rent now pay later options.

NO CHANGE IN PAST 3 YEARS

“[When moving] the savings often don't justify the hassle. With the current demand in the market, landlords aren't really negotiating much on new listings — so it's not like people are finding major bargains.

"From what we have seen on our platform, almost 90 per cent of tenants still choose to renew, even if the rent goes up a bit rather than go out and find a new place.”

In fact, in each of the last three years, renewals have prevailed over existing tenants preferring new leases.