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Dubai tenants get 1 month's free rent, better deals as landlords adjust to rising supply
With a surge of new residential units and moderating demand, Dubai’s rental market is rebalancing, prompting landlords to adapt strategies, improve offerings
- PUBLISHED: Tue 16 Sept 2025, 6:00 AM UPDATED: Tue 16 Sept 2025, 9:13 AM
A growing supply of new residential properties in Dubai and softening absorption are turning the rental market in favour of tenants, as some units are staying slightly longer in the market.
According to real estate analysts, landlords are becoming flexible, offering multiple cheque payments, one month’s free rent, waived commission fees, and inclusive utility bills, as more and more Dubai residents are shifting to homeownership and rental renewals are moderating.
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“We observed a temporary misalignment between landlord expectations and evolving market demand, resulting in slightly longer time-on-market for properties. However, this dynamic is actively fostering a more tenant-centric environment,” said analysts at global real estate consultancy CBRE.
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“Landlords are increasingly adopting a proactive approach, leading to a welcome resurgence of attractive incentives such as flexible multiple cheque payments, one month’s free rent, waived commission fees, and inclusive utility bills. As more units enter the market, we anticipate moderate rental adjustments, creating new opportunities for residents. Whilst the degree of adjustment will need to be compelling enough to encourage significant internal market movement, this evolving landscape points to increased options and value for tenants,” they said in the second quarter report of 2025 on the UAE’s real estate market.
According to the latest data by Reidin, Dubai’s residential market remained highly active in August 2025, with 38 new project launches adding nearly 8,000 fresh units to the city’s supply. In addition, 35 upcoming projects were announced.
While Property Monitor data showed that Dubai’s project pipeline showed no signs of slowing in July, as more than 50 launches brought over 13,800 residential units to market with a combined estimated gross sales value of Dh38 billion. This brought the year-to-date tally to nearly 93,000 units and Dh270 billion in potential sales in the first seven months.
Softening absorption
“With nearly 93,000 units launched year-to-date, buyer selectivity is rising, and early indicators of softening absorption are becoming more pronounced. Developers will need to shift focus from velocity to viability, with increased emphasis on product differentiation, delivery timelines, and realistic pricing strategies,” said Property Monitor analysts in the latest report about the Dubai property market.
Following a four-year-plus rally in property prices and rentals, the market is taking a breather, and the growth rate is slowing down.
According to CBRE, the Dubai rental market saw one per cent growth month-on-month for apartments and two per cent for villas.
The market previously saw much higher growth in the previous quarters and years at a double-digit rate, reaching a record high.
CBRE analysts said landlords across numerous buildings are strategically enhancing their properties, including furnished and upgraded units, to differentiate their offerings. “These superior properties command higher prices and attract tenants seeking convenience and modern living, thereby fueling the upward trend in average rents,” they said.
As the market matures and rebalances itself, CBRE noted rents are increasing not just due to new residents flocking to the city, but also partly due to internal relocations as residents sought new housing solutions.
