Dubai tenants face difficult rent decisions as property market thrives

As the economy recovers from the onset of the pandemic and Dubai property prices recover, tenants say they face sizeable rises in rent.

In some of the most popular areas of the emirate, rent has increased by up to 20 per cent after prices dipped during the pandemic.

In October last year, Lebanese resident Hoda Ayache, 52, rented a spacious flat in Dubai Sports City through an estate agency so she could work from home more comfortably.

She paid Dh42,000 a year for the two-bedroom property, and said this was a good deal at the time, despite months of maintenance glitches including problems with the air conditioning and plumbing.

The agency sent me an email and stated that according to the Rera calculator they could increase the rent by 20 per cent as the property was already rented out at 40 per cent less than market value

Hoda Ayache,
Dubai resident

In July, three months before her contract was up for renewal, she was told the rent would rise to Dh50,400 a year.

“The agency sent me an email and stated that according to the Real Estate Regulatory Authority (Rera) calculator, they could increase the rent by 20 per cent as the property was already rented out at 40 per cent less than market value,” she told The National.

Hoda Ayache moved out of her apartment in Sports City as the rent increase was too high. Khushnum Bhandari / The National

“I wouldn’t have minded so much, but the apartment was in such bad condition. For the whole time I was living there, the air conditioning did not work correctly and I had continuous leaks in the bathroom ceiling.

“Despite several visits from the maintenance team, the landlord or agency didn’t fix the issues, so when I got that email about the rent increase I was shocked.”

After months of going back and forth, trying to negotiate the price, Ms Ayache decided to move out of the apartment when her contract expired.

Lucas Charles, a public relations executive from New Zealand, said he faced a yearly increase of Dh6,000 on his two-bedroom property in The Greens two months ago. He had been paying Dh56,000 per year for two years prior to the rent increase alert.

“I know the rental market has bounced back from the Covid-19 pandemic, which is good for landlords, but some people are still faced with pay cuts from work,” he said.

“To get slapped with a considerable rent hike is stressful. I didn’t want to move from the property as I love the area, so I tried to negotiate a fair deal.

“After several unanswered emails, I eventually managed to speak to someone but had no luck trying to lower the increase. I ended up just agreeing to the new contract.”

He now pays Dh62,000 a year for his apartment.

Estate agents say property market is booming

Estate agents working across the city said the rental market has not been this busy in years. Clients are eager to snap up townhouses and villas – particularly in the city’s desert suburbs – as quickly as possible. The legacy of remote working is a major factor, with many professionals now splitting their working week between the office and home.

Mario Volpi, sales and leasing manager for Engel & Voelkers, said landlords can legally raise the rent by up to a fifth, regardless of whether they are charging below market price.

“The most he or she can raise it by in any one year is 20 per cent, but it has to be in line with what the Rera calculator states,” he said.

“The likelihood is, if a tenant is now being charged 20 per cent more from one year to the next, they must have been paying well below market value to begin with.

“When someone moves into a property, a tenancy agreement is written. In that, it states that if a tenant or landlord wish to make changes to a contract, be it the rent or number of cheques given, this has to be communicated three months before the year is up,” Mr Volpi said.

“If the landlord has communicated a rental increase within the 90-day period, in writing, and it is in line with the Rera calculator, if the tenant does not agree, their only other choice is to vacate the property.”

How Dubai’s rent calculator works

Rera was established 2013 to regulate the market and prevent it from overheating. Its rental calculator shows whether or not an increase is applicable and uses criteria such as location, property type, current rent and number of rooms. It works by comparing properties with similar ones nearby.

For instance, if the current annual rent is below 10 per cent of the market value, no increase is allowed. But if the rent is between 11 per cent and 20 per cent under the market, a maximum rise of 5 per cent is permitted. This progresses to a maximum of 20 per cent.

Mr Volpi said coming to a fair agreement on rent is all about negotiating and “establishing good landlord-tenant relationships”. But ultimately, if the landlord does not agree to the tenant’s revised price, the tenant has to vacate.

While tenants may feel hard done by in this case, Mr Volpi said the current property laws often tend to “favour and protect the tenant”, as the government does not want to be seen allowing landlords to push tenants out unfairly.

“When the market is going up, as it is now, the landlord has to abide by the Rera calculator not the market price,” he said.

“But when prices go down, the rent calculator goes out of the window and the tenant relies with the market forces and, as such, has way more bargaining power.”

Naseer Alam, founder and chief executive of Expert Properties in Dubai, said demand for residential property was rising.

“This is majorly because of people visiting the UAE for Expo 2020 Dubai,” he said.

“It has led to a substantial rise in the properties, be it short or long-term, particularly studio apartments preferred by executives or villas opted for by families. As per our records, this rise in price is greater than anything that has been in the past three years.

“Some of the most prominent areas where these properties have witnessed an increase in demand and rents are Dubai Marina, Al Wasl, Jumeirah, The Palm and Dubai Silicon Oasis.”

How properties in Dubai go in minutes

Estate agent Charlie Shetliffe is arranging up to six viewings a day for potential tenants. Issa AlKindy for The National
Prospective tenants view a property in Dubai's Jumeirah Golf Estates. Issa AlKindy for The National
Dubai Marina remains the most popular destination in the emirate for those seeking luxury apartments, according to a report. AFP
Jumeirah Village Circle is the most searched for area by those looking for budget-friendly apartments in Dubai, the report revealed. Chris Whiteoak / The National
There is currently a lot of demand for villa communities in Dubai, according to estate agents. Issa AlKindy for The National
Villas and town houses are being snapped up almost immediately in the emirate. Issa AlKindy for The National
Potential tenants measure a property in Jumeirah Golf Estates. Issa AlKindy for The National

Results

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5.30pm: Wadi Sidr – Handicap (PA) Dh80,000 (T) 1,200m; Winner: AF Majalis, Tadhg O’Shea, Ernst Oertel

6pm: Wathba Stallions Cup – Handicap (PA) Dh70,000 (T) 2,200m; Winner: AF Fakhama, Fernando Jara, Mohamed Daggash

6.30pm: Wadi Shees – Handicap (PA) Dh80,000 (T) 2,200m; Winner: Mutaqadim, Antonio Fresu, Ibrahim Al Hadhrami

7pm: Arabian Triple Crown Round-1 – Listed (PA) Dh230,000 (T) 1,600m; Winner: Bahar Muscat, Antonio Fresu, Ibrahim Al Hadhrami

7.30pm: Wadi Tayyibah – Maiden (TB) Dh80,000 (T) 1,600m; Winner: Poster Paint, Patrick Cosgrave, Bhupat Seemar

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks.

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.

8. Pillar 2 implementation

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

10 tips for entry-level job seekers

Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
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Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
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Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz

Profile

Company: Justmop.com

Date started: December 2015

Founders: Kerem Kuyucu and Cagatay Ozcan

Sector: Technology and home services

Based: Jumeirah Lake Towers, Dubai

Size: 55 employees and 100,000 cleaning requests a month

Funding: The company’s investors include Collective Spark, Faith Capital Holding, Oak Capital, VentureFriends, and 500 Startups.

UAE squad

Ali Kashief, Salem Rashid, Khalifa Al Hammadi, Khalfan Mubarak, Ali Mabkhout, Omar Abdelrahman, Mohammed Al Attas (Al Jazira), Mohmmed Al Shamsi, Hamdan Al Kamali, Mohammad Barghash, Khalil Al Hammadi (Al Wahda), Khalid Eisa, Mohammed Shakir, Ahmed Barman, Bandar Al Ahbabi (Al Ain), Adel Al Hosani, Al Hassan Saleh, Majid Suroor (Sharjah), Waleed Abbas, Ismail Al Hammadi, Ahmed Khalil (Shabab Al Ahli Dubai) Habib Fardan, Tariq Ahmed, Mohammed Al Akbari (Al Nasr), Ali Saleh, Ali Salmeen (Al Wasl), Hassan Al Mahrami (Baniyas)