Dubai's rental market is witnessing a significant shift as tenants increasingly opt for multiple cheque payments in response to soaring rental prices.
According to industry executives, many landlords are adapting to this trend by offering more flexible payment terms and issuing fewer eviction notices.
Lewis Allsopp, chairman of Allsopp & Allsopp, highlighted the changing landscape, noting,
“With demand at an all-time high and rental prices continuing to increase steadily, many landlords are offering more flexible payment terms.”
The demand for rental properties in Dubai surged, with over 140,000 new residents moving to the emirate in just 11 months of 2024. Most newcomers are seeking homes to rent, prompting landlords to adjust their strategies to retain tenants.
Recent data from Allsopp & Allsopp’s third-quarter report for 2024 shows that a majority of tenants are now paying rent in 6 to 8 cheques, reflecting both a growing need for affordability and landlords’ willingness to accommodate. The upward trend in rental prices has been evident, with average apartment rents rising by 19% and average villa rents by 13% over the first nine months of 2024, according to CBRE.
Zhann Jochinke, chief operating officer at Property Monitor, added that there is a notable reduction in eviction notices, as landlords prefer to keep reliable tenants. He remarked,
“While the traditional ‘one cheque’ payment method can mean a better rental deal for tenants, most prefer the more flexible, multi-cheque option.”
This evolving dynamic highlights the need for transparency and fairness in the rental market, reinforced by the Dubai Land Department's Rera rental index, which educates both landlords and tenants about their rights regarding rent increases and evictions.
News Source: Khaleej Times
