Rents22 August 2026 6 min read

Dubai rents softened in Q2. The renewal negotiations you can actually win now

Softer rents do not mean automatic reductions. Here is what a well-run renewal conversation looks like in the current climate.

Landlord notice for change
90 days minimum
UAE Law No. 26/2007
RERA max increase within 10% of market
0%
Decree 43/2013
RERA max increase at 40%+ below market
20%
Decree 43/2013

Landlords do not automatically drop rent because the market softens. But the underlying data supports better outcomes for well-prepared tenants than at any point in the last three years. Here is what to send, when to send it, and what to expect back.

The rule most tenants forget

A Dubai landlord can only change the rent — up or down — at renewal, and they must serve 90 days' written notice before the renewal date. If no valid notice is served, the tenancy renews on existing terms. That single rule resolves more Dubai rent disputes than any other.

The corollary rarely used by tenants: you can serve a proposed change in the other direction. In a market where rents have softened, a well-drafted request to reduce rent at renewal, referenced to comparables and the RERA index, is a legitimate opening — even though it is not a legal obligation on the landlord.

What to actually send

A one-page letter, 100 days before your renewal date. State the property, the current rent, and the proposed new rent. Reference three specific comparable units currently listed in your building or immediate area — screenshots and links, not vague claims. Reference the RERA rental index figure for your area and unit type.

Do not open with a threat to leave. Do not attach a spreadsheet. The purpose of the letter is to reset the landlord's expectation before they draft their own renewal notice; if they receive it in time, they usually meet you partway rather than serve their own increase notice and lose the tenant.

What to expect back

In a softening market, our observation across current renewals is that landlords settle in three broad ranges. If your current rent is close to market, expect a flat renewal — no increase, no decrease, but the concession of not raising is meaningful in itself. If your current rent is materially above market, expect a modest reduction of 3–8% rather than the full move to market — landlords protect their yield.

If your current rent is well below market, the landlord has legitimate scope under RERA to raise it. That is the situation where a proposed reduction letter is the wrong approach and a proactive renewal at a modest increase is the right one.

Our read

Softer rents change the negotiating balance but they do not change the rules. Use the 90-day notice window. Use the RERA index as data, not as a demand. Present comparables that a landlord can verify. And approach the conversation from the position that both sides benefit from a smooth renewal — an empty unit for two months costs a landlord more than a small negotiated reduction does.

Sources

Referenced articles. Analysis and commentary above are MRK’s own.

Want our read on your specific situation?

Whether you are buying, selling or renewing — send us the specifics and we will tell you what we think.

Trusted by property investors across 40+ nationalities

Connect with MRK

Dubai's property market is moving fast. Let our advisors help you navigate the opportunities.