Renew or relocate? Many Dubai tenants face tough choices amid Rental Index changes

The recent changes to Dubai's RERA (Real Estate Regulatory Agency) Rental Index are placing many tenants in a difficult position, as they must decide whether to renew their leases at potentially higher rates or seek new rental options. The updated index allows landlords more freedom to adjust rents according to current market conditions, which can result in significant increases—up to 20%—for tenants facing lease renewals.

Tenants must quickly assess their financial capacity to absorb these hikes and consider the costs associated with moving, such as new deposits and moving services. Reviewing the terms of their current lease and engaging in negotiations with landlords might yield more favorable renewal conditions. Market research is essential to compare rates for similar properties and explore alternative rental options that might offer better value.

Long-term plans should also be considered, weighing the benefits of stability against the potential advantages of relocating, such as better amenities or proximity to work. Given the urgency with the summer break approaching, tenants should gather information, communicate promptly with their landlords, consult real estate experts if necessary, and seek legal advice to understand their rights. Making an informed decision quickly can help tenants navigate the impact of these rental market changes effectively.