New leases exceeded renewals by 633 contracts in July and by 2,139 in August, marking the first time new contracts have outnumbered renewals in any month since the dataset began in January 2023.

The turnaround follows 36 consecutive months in which renewals outnumbered new leases, suggesting tenants are becoming more willing to move as rents soften and better-value options emerge, particularly across mid-market and prime districts.

The trend also follows a sharp rise in the number of people looking for new homes. Dubai rental searches jumped 44 per cent year-on-year during the summer, as residents explored everything from more affordable communities to larger homes and premium neighbourhoods.

Firas Al Msaddi, founder and CEO of fäm Properties, said rents on new leases for the same building and unit type are now 15.3 per cent lower than in January, while renewal rents have declined by only around 1 per cent.

“Previously, it was in the interests of tenants to stay where they were, especially as moving home can be challenging in various ways,” Al Msaddi said.

“But that has all changed because tenants can now move to a comparable apartment for less than a renewal would cost.”

(Source: Khaleej Times)