One in five Dubai tenants now pays a lower rent
21.4% of Dubai tenants paid lower rents in Q3 2026, against 4.8% in Q1, as supply rose and the average rent climbed 5.5% year on year.
Data from Cavendish Maxwell showed that 21.4% of rental transactions in Dubai during the third quarter of 2026 were renewed at a rent lower than the previous contract, against only 4.8% in the first quarter of the same year.
Some 38.7% of tenants renewed their contracts at the same rent, while 40% saw their rent rise, against 59.4% in the first quarter, according to Khaleej Times.
The average rent reached AED 77.3 per square foot annually in September, up 5.5% year on year, while the number of registered contracts exceeded 172,000.
The rise in the share of renewals at a lower rent indicates that increased supply has begun to pressure prices in some areas, even as the overall average remains above its level a year earlier.
What do these terms mean?
Square foot: A unit of area measurement used in real estate, with one square foot equal to about 0.093 square metres.
Year-on-year basis: Comparing a current period's value with the same period last year to measure the real change.
Contract renewal: The tenant and landlord agreeing to extend the lease, which may be at the same, lower or higher rent.
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