Experts say the broader rental market remains fundamentally strong, supported by long-term demand and population growth<\/p>\n\n\n\n
Residents in Dubai and Abu Dhabi are beginning to rethink their rental decisions, with some delaying lease renewals or exploring short-term options amid early signs that the market may be shifting in their favour.<\/p>\n\n\n\n
While rents remain elevated overall, industry experts say growing uncertainty and recent changes in the short-term rental market are prompting a more cautious approach among tenants \u2014 and, in some cases, opening room for negotiation.<\/p>\n\n\n\n
\u201cThe rental market right now has gone from a landlord\u2019s market to a tenant\u2019s,\u201d said Mario Volpi, senior vice president advisory at Allegiance Real Estate.<\/p>\n\n\n\n
Some residents are increasingly opting to \u201cwait and watch\u201d rather than lock into 12-month contracts at current rates.<\/p>\n\n\n\n
According to Volpi, if tenants have flexibility, many are choosing to delay decisions in the short term to better understand how the market evolves.<\/p>\n\n\n\n
\u201cIf tenants have time, they are definitely delaying and waiting to see what prices do,\u201d he said, adding that sentiment and uncertainty are currently key drivers of behaviour.<\/p>\n\n\n\n
This shift comes as the short-term rental segment \u2014 including holiday homes \u2014 has seen a sudden slowdown in recent weeks, prompting some landlords to consider alternative leasing strategies.<\/p>\n\n\n\n
Volpi explained that weakness in the short-term rental market can indirectly impact long-term rents.<\/p>\n\n\n\n
As occupancy drops, some landlords may shift their properties into mid-term or annual leasing, increasing supply and putting downward pressure on prices.<\/p>\n\n\n\n
However, he stressed that this dynamic is still evolving.<\/p>\n\n\n\n
\u201cIt\u2019s too early to say how the market will react in rentals,\u201d he said, noting that the recent drop in short-term occupancy is a broad-based estimate driven largely by sentiment and external factors.<\/p>\n\n\n\n
For many tenants, the experience just weeks ago was very different.<\/p>\n\n\n\n
An Abu Dhabi-based project manager in the oil and gas sector, who renewed his lease in February, said he had little choice but to accept a rent increase.<\/p>\n\n\n\n
\u201cMy lease was up for renewal in early February. The rent increase matched the maximum allowable (5%),\u201d he said, adding that attempts to negotiate were unsuccessful.<\/p>\n\n\n\n
\u201cEssentially, I had no choice: either renew at the new rate or move out.\u201d<\/p>\n\n\n\n
Despite recent discussions around potential softening, he said he would still prioritise stability over speculation.<\/p>\n\n\n\n
\u201cPersonally, I value stability, so I\u2019d likely renew under similar terms,\u201d he added, noting that market direction remains uncertain due to ongoing regional developments.<\/p>\n\n\n\n
More recently, however, some tenants are attempting to negotiate short-term extensions instead of committing to full-year contracts.<\/p>\n\n\n\n
Simriddhi Singh, an off-plan sales specialist and Abu Dhabi resident, said she has seen cases where tenants are requesting two- to three-month extensions to delay long-term commitments.<\/p>\n\n\n\n
\u201cPeople are asking for two to three months\u2019 extension\u2026 to wait and see what happens,\u201d she said.<\/p>\n\n\n\n
In some cases, landlords are open to shorter terms \u2014 but at revised rates.<\/p>\n\n\n\n
\u201cOwners are willing to extend, but they are asking for the new rental price even on a monthly basis,\u201d she said.<\/p>\n\n\n\n
This reflects a market that is not necessarily declining, but becoming more nuanced.<\/p>\n\n\n\n
\u201cIt will slow down, but it will not crash,\u201d Singh added.<\/p>\n\n\n\n
Experts say the broader rental market remains fundamentally strong, supported by long-term demand and population growth. However, increased supply, seasonal trends, and shifting sentiment could lead to softer conditions in certain segments.<\/p>\n\n\n\n
Volpi noted that tenants may begin to see added incentives, such as discounts, maintenance packages, or flexible terms, as landlords compete to secure occupancy.<\/p>\n\n\n\n
\u201cThe real story is that Dubai is moving away from a runaway landlord market to a more balanced market that some tenants can use to lock in better rates,\u201d he said.<\/p>\n\n\n\n
Source: Khaleej Times<\/strong><\/p>\n\n\n\n Published: 2 April <\/strong>2026<\/strong><\/p>\n\n\n\n <\/p>","protected":false},"excerpt":{"rendered":" Experts say the broader rental market remains fundamentally strong, supported by long-term demand and population growth Residents in Dubai and Abu Dhabi are beginning to rethink their rental decisions, with some delaying lease renewals or exploring short-term options amid early signs that the market may be shifting in their favour. While rents remain elevated overall, […]<\/p>","protected":false},"author":7,"featured_media":39639,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[1148,2564,6399,6398,6400],"class_list":["post-39636","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-dubai-rent","tag-property-market","tag-rental-negotiation","tag-tenant-tips","tag-uae-tenants"],"_links":{"self":[{"href":"https:\/\/elite-bricks.com\/it\/wp-json\/wp\/v2\/posts\/39636","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/elite-bricks.com\/it\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/elite-bricks.com\/it\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/elite-bricks.com\/it\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/elite-bricks.com\/it\/wp-json\/wp\/v2\/comments?post=39636"}],"version-history":[{"count":1,"href":"https:\/\/elite-bricks.com\/it\/wp-json\/wp\/v2\/posts\/39636\/revisions"}],"predecessor-version":[{"id":39640,"href":"https:\/\/elite-bricks.com\/it\/wp-json\/wp\/v2\/posts\/39636\/revisions\/39640"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/elite-bricks.com\/it\/wp-json\/wp\/v2\/media\/39639"}],"wp:attachment":[{"href":"https:\/\/elite-bricks.com\/it\/wp-json\/wp\/v2\/media?parent=39636"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/elite-bricks.com\/it\/wp-json\/wp\/v2\/categories?post=39636"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/elite-bricks.com\/it\/wp-json\/wp\/v2\/tags?post=39636"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}