Negotiate Better Rent Deals in Dubai
Renting in Dubai: How to Negotiate Better Deals on Older Buildings?
Dubai's real estate market is constantly evolving, and the abundant supply of new residential buildings in the city can significantly influence rental prices. Real estate experts suggest that owners of older buildings may face pressure to make their properties more attractive and maintain high occupancy rates. This could create opportunities for tenants to negotiate more favorable terms.
Why Negotiate the Rent?
The supply side of the real estate market in Dubai is set to expand significantly, particularly in 2025, when numerous new buildings are scheduled for completion. This increased supply is expected to put pressure on rental prices, especially in areas where there is strong competition between new and modern buildings.
Owners of older buildings may find it harder to retain tenants, especially if their properties cannot keep up with the convenience services and modern technology offered by newer buildings. As a result, they might offer various incentives—such as lower rental rates or flexible contract terms—to remain competitive.
How to Negotiate the Rent?
If you are currently living in an older building or are about to rent one, the following strategies can help you achieve a lower rent:
1. Market Research
It's worth understanding the rental prices in the area, especially in new buildings. When comparing, consider the value for money, services, and the condition of the property.
2. Negotiation Skills
Reach out to the owner or the leasing agent and inquire about possible discounts. Indicate that you are aware of market trends and feel free to mention the increasing supply of new buildings, which could lead to price reductions.
3. Proposing Long-Term Lease
Longer rental periods might be attractive to owners, providing them with stable income. Therefore, it is worth mentioning that you are willing to sign a longer contract in exchange for a lower rate.
4. Flexibility on Advance and Other Costs
If an immediate rent reduction is not possible, try negotiating in other areas, such as the amount of the deposit or the schedule of rent payments.
Where Might Rent Drops Be Expected?
By 2025, rent decreases are more likely in neighborhoods where a significant number of new residential buildings will be completed. These modern buildings offer a high level of comfort and state-of-the-art services that older buildings may struggle to compete with. This trend could be particularly strong in popular areas such as Jumeirah Village Circle (JVC), Dubai South, or Al Furjan.
What Can Renters Expect?
The entry of new buildings into the market presents tenants with the opportunity to move into more modern properties on better terms or utilize their bargaining position to lower their current rents. This could be especially true for older buildings, where owners might be more open to unique agreements.
Dubai's dynamic real estate market requires flexibility from both tenants and owners. Whether you are looking for a new apartment or want to renew your existing lease, negotiation skills and knowledge of the market can help you get the best deal possible.
