What is the current trend in Dubai's rental market regarding new leases vs. Renewals?

New rental leases are now exceeding renewals for the first time in over three years. In July, new leases surpassed renewals by 633 contracts, and in August, this difference grew to 2,139 contracts, marking a significant shift in tenant behaviour.

How much can tenants save by opting for a new lease compared to renewing?

Analysis by fäm Properties indicates that tenants can secure savings of up to 15% on new leases for comparable properties. Rents on new leases for the same building and unit type were 15.3% lower in August compared to January, while renewal rents only declined by approximately 1%.

Which Dubai communities are seeing the most tenant movement to new leases?

The highest tenant movement to new leases is observed in Al Barsha South Fourth (which includes Jumeirah Village Circle), Business Bay, Al Merkadh, Dubai Marina, and Downtown Dubai. JVC recorded 1,102 more new leases than renewals in August.

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Market·24 September 2026

Dubai Tenants Prioritise New Leases Over Renewals as Rental Savings Emerge

For the first time in over three years, new rental contracts in Dubai are outpacing renewals, with tenants moving to secure savings of up to 15% on similar properties, according to analysis by fäm Properties.

Dubai's rental market is undergoing a significant shift, with tenants increasingly opting to move homes rather than renew existing leases. This trend, driven by new rental contracts offering savings of up to 15%, marks a reversal in market dynamics.

According to an analysis of Dubai Land Department data by fäm Properties, new leases surpassed renewals by 633 contracts in July and 2,139 in August. This is the first time since January 2023 that new contracts have outnumbered renewals in any given month, ending a 36-month period where renewals were dominant.

Key Market Changes

Firas Al Msaddi, founder and CEO of fäm Properties, noted that rents on new leases for comparable units are now 15.3% lower than in January. In contrast, renewal rents have seen only about a 1% decline. This disparity makes moving a financially attractive option for tenants, particularly across mid-market and prime districts where better-value options are emerging.

The shift follows a 44% year-on-year surge in rental searches during the summer, as residents explored more affordable communities, larger homes, and premium neighbourhoods.

Areas of Movement

Specific communities are experiencing this trend more acutely. In August, new leases significantly outnumbered renewals in:

Al Barsha South Fourth ([JVC](/areas/jvc)): 1,102 more new leases
Business Bay: 609 more new leases
Al Merkadh: 598 more new leases
Dubai Marina: 564 more new leases
Downtown Dubai: 342 more new leases

These areas were also highly searched online for rental apartments during the summer. Jumeirah Village Circle (JVC) stood out with a median asking annual rent of approximately AED 70,000, compared to AED 99,900 in Business Bay and AED 120,000 in Dubai Marina. More affordable districts like International City, Jebel Ali, and Dubai Silicon Oasis continued to see renewals outnumber new leases.

Overall Market Resilience

Despite the increased tenant mobility, Dubai's overall leasing activity remains relatively stable. New-lease contracts from January to August were only 1% below the same period in the previous year, with renewals also seeing a 1% decrease. July recorded approximately 14,100 new leases, while August saw around 15,600, both higher than the figures from a year prior.

The median rent for new apartment leases in August was AED 94.6 per square foot, an 8.3% decrease from its October 2025 peak of AED 103.1 per square foot. Al Msaddi suggests that tenants are upgrading to better-quality and better-located properties, contributing to resilient overall average rents even as individual apartment rents decline.

Frequently asked

Questions, answered

What is the current trend in Dubai's rental market regarding new leases vs. Renewals?: New rental leases are now exceeding renewals for the first time in over three years. In July, new leases surpassed renewals by 633 contracts, and in August, this difference grew to 2,139 contracts, marking a significant shift in tenant behaviour.
How much can tenants save by opting for a new lease compared to renewing?: Analysis by fäm Properties indicates that tenants can secure savings of up to 15% on new leases for comparable properties. Rents on new leases for the same building and unit type were 15.3% lower in August compared to January, while renewal rents only declined by approximately 1%.
Which Dubai communities are seeing the most tenant movement to new leases?: The highest tenant movement to new leases is observed in Al Barsha South Fourth (which includes Jumeirah Village Circle), Business Bay, Al Merkadh, Dubai Marina, and Downtown Dubai. JVC recorded 1,102 more new leases than renewals in August.
What are the median annual asking rents in popular communities like JVC and Dubai Marina?: Median annual asking rents are around AED 70,000 in Jumeirah Village Circle (JVC), AED 99,900 in Business Bay, and AED 120,000 in Dubai Marina. These figures illustrate the diverse price points attracting tenants.
How has overall leasing activity changed in Dubai despite increased tenant mobility?: Despite tenants moving more, Dubai's overall leasing activity has remained relatively stable. New-lease contracts from January to August were only 1% below the same period last year, and renewals also saw a 1% decrease, indicating sustained market volume.

Reported by

Google News — DLD / RERA (7d) · Google News — UAE Rent & Mortgage (7d)

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This brief was summarised and rewritten by Gaia Living from public reporting. Figures and details reflect the original sources.

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