UAE Property: ‘Why is my townhouse not renting out?’

If the townhouse lacks amenities or features, doesn't have a view, or has higher service charges than younger buildings, tenant demand will weaken. Antonie Robertson/The National

Question: I’ve been marketing my townhouse for rent in a popular suburb for two months now with no tenant. The agents bring prospective tenants, but they just look and I never hear from them again. Is this normal? Does it signal a problem with the market or something wrong with my property? CT, Dubai

Answer: Yes, sometimes the property market can be slow in certain segments of Dubai’s rental market. It often signals either a pricing mismatch or competitive supply pressure rather than a complete market slowdown.

It is quite common (as is in your case) for people to come for viewing but not make an offer. There are several possible reasons. Over-pricing could be one. If your asking rent is above current market rates, the tenant flow stalls or you get viewings, because people are curious, but it stops there.

Location or product mismatch could be another reason. Even in a strong suburb, if the townhouse lacks amenities or features, is not decorated to a high standard, or doesn't have a view, or perhaps has higher service charges than younger buildings, demand will weaken.

Supply timing could also be a factor. If new neighbouring stock is entering the market, tenants have more options.

Please also question the agents. Quality of photos, listing reach and agent networks matter. Some owners rely on one agent, whereas sometimes broader exposure helps reduce the amount of time a property is on the market.

My advice would be to rethink your rent. Check three comparable units in your community or adjacent communities; compare conditions, the view, furnishings and then decide on a new asking price. If you factor in vacancy cost, reducing rent by 5 per cent or 10 per cent may be worthwhile if it secures a tenant.

Another option would be to consider tenant incentives such as one month free or allowing multiple cheques. Or offer a hassle-free maintenance package should anything arise during the tenancy. Upgrade minor finishes to make your townhouse stand out.

Ask your agent how many viewings have taken place. Ask them for feedback and what objections they are hearing. If the agent says “no feedback”, you have a marketing issue.

Two months without a tenant is not catastrophic, but is a clear signal you need to act. In Dubai’s rental market, time on market matters almost as much as headline rent. Therefore, act early to adjust pricing, improve product or marketing. Just waiting will cost you more in lost rent.

Q: I am considering investing in a mixed-use project within the UAE. With so much residential supply available already, is this strategy smarter or riskier? I am a first-time investor. CG, Dubai

A: Investing in mixed-use projects can be an excellent strategy right now, especially in the UAE’s evolving real estate ecosystem where live-work-play is becoming more than a phrase, it’s a requirement. However, like any strategy, success depends on execution, location and clarity of income streams.

Although I agree that this strategy has merits, it's important to look at all the factors before making a decision on this asset class.

Mixed-use developments capture diverse revenue streams in the form of residential rents, retail leases and office tenancies. This diversification cushions you against one segment’s downturn over the other.

Demand fundamentals in certain emirates favour mixed-use projects, specifically corporate relocations, remote work-friendly office space, lifestyle-focused retail and residential units wanting certain amenities. Dubai’s recent data for the first and second quarters show strong occupancy in Grade A offices (more than 90 per cent), suggesting that the “live + work” trend is real.

For end users and residents, these developments offer convenience of amenities and higher foot traffic, making them appealing for resale and rental incomes.

Here's what Dh1 million gets you in Dubai's property market today

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However, I suggest you check and verify the following details.

Look out for the quality of the developer and product mix. A strong developer with a track record in commercial and residential is preferred. The weakest mixed-use deals are ones where the residential product drags the retail or office, or vice versa.

Lease structure and tenant mix is also something to consider. Offices might have longer leases and higher credit tenants, retail might turn over faster. Check whether the residential component is locked into a strata owner arrangement or whether management shifts the costs to owners.

Service charges and shared costs could be higher. Mixed-use buildings often carry higher service charges due to amenities and the combined footprint. You must include this in your net yield analysis.

Think about when and how to exit the investment. The market for retail or office units is different to residential. There are fewer buyers and a different risk appetite. If you’re comfortable holding on to the investment long term, then this is fine, but if you are looking to get out quickly, this may cause a problem as it may be slower.

Lastly, look for regulatory clarity. Free zones, strata ownership rules, leasing regulation and community governance vary by each emirate. Make sure you understand whether your unit is freehold, leasehold or part of a hospitality component and what that may entitle you to do or not.

If all is executed well and in the right location (for example, near major transport hubs, business districts, established communities), a mixed-use investment in the UAE can be smarter than pure residential in 2025–26 because this asset class caters to a large base. I suggest you treat it as a portfolio piece, definitely not a speculative buy and flip.

The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to [e-mail]