Dubai Rent Renewals 2025: Why Tenants Prefer Staying Put

Real Estate July 15, 2025

OplusAdmin

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Dubai rent renewals 2025 are becoming the dominant trend across the city’s property market. As rental rates stabilize — or even drop in some areas — more tenants are opting to renew existing leases rather than face the cost and hassle of moving. Whether in Dubai Marina, Arjan, or Business Bay, this pattern is gaining momentum citywide.

At OPlus Realty, we’re tracking the data and assisting residents as they make smart rental decisions in today’s evolving market.

Why Are Lease Renewals So Popular in 2025?

Many tenants are choosing to stay in their current homes. This decision is largely influenced by financial practicality, convenience, and new regulatory dynamics introduced this year.

Lower Costs Than New Leases

One of the main reasons tenants are favoring Dubai rent renewals in 2025 is cost savings. According to market estimates:

New leases are costing 10% to 30% more than renewals.
Renewal requests typically see 5% to 10% increases, depending on area and landlord flexibility.

In contrast, moving to a new unit involves:

Higher annual rent
Additional agent commission
Deposit fees
Moving expenses

Thus, from both a financial and logistical standpoint, renewals make more sense.

Where Are Renewals Most Common?

Arjan, JVC, and The Springs Lead the Way

These communities are seeing high rates of renewals as tenants prioritize staying in neighborhoods they know, especially when rental hikes are modest.

Area	Studio Rent Avg.	1-Bedroom Avg.
Arjan	AED 50,000	AED 72,000
Business Bay	AED 80,000–85,000	AED 120,000+
Downtown Dubai	From AED 60,000	AED 100,000

While Business Bay has bucked the trend — with more new leases signed recently — most other districts still favor renewals.

What Role Does the Smart Rental Index Play?

The Smart Rental Index, introduced by the Dubai Land Department in January 2025, has played a major role in shifting tenant behavior.

Key Impacts:

The Index regulates rental increase limits based on real-time market data.
Early 2025 saw a wave of rental adjustments as landlords maximized allowed increases.
Now, price growth has stabilized in most buildings.

Most landlords now propose a 5% to 10% increase, although some still request up to 15% — but only if the Index permits it.

Thanks to this transparent system, tenants are more confident in negotiating their renewals.

Why Tenants Prefer Staying Over Moving

Tenants continue to choose renewals for the following reasons:

✅ Avoiding new, inflated lease rates
✅ Skipping moving-related expenses and hassle
✅ Staying in preferred school zones or communities
✅ Maintaining landlord relationships and existing service agreements

Moreover, many renters know that newly handed-over buildings often come with premium pricing — even when located farther from city centers.

Explore affordable listings in Arjan and JVC with OPlus Realty

What Landlords Should Know in 2025

From an investor’s perspective, high renewal rates mean:

Less vacancy risk
Better tenant retention
Predictable income streams

Landlords are advised to:

Benchmark against the Smart Rental Index
Offer incentives like minor upgrades or maintenance waivers
Keep renewal increases reasonable to maintain occupancy

Summary: Dubai Rent Renewals 2025 Outlook

Trend	Insight
Renewal Rates	High across most communities
Rental Price Movement	Stabilizing; increases mostly 5%–10%
New Lease Pricing	Often 10%–30% higher than renewals
Smart Index Impact	Encourages fair pricing and tenant retention
Top Renewal Locations	Arjan, JVC, The Springs, Dubai Silicon Oasis
Notable Exception	Business Bay — new leases slightly outweigh renewals

Ready to Renew or Explore a Better Rental Option?

Whether you’re preparing for your next renewal or wondering if it’s time to move, OPlus Realty can help you make an informed decision. Our team will: