Dubai tenants get 1 month free rent, better deals as landlords adjust to rising supply
In Dubai the real estate market is softening which helps the tenants because there are lots of new apartments being built and the rental market is softening which will make more units available and become more competitive in pricing.
CBRE real estate analysts are observing increasingly lenient rental policy implementations to make paying rent easier. These policies include lasting free of 1 months rent for 1 month free rent available in total, modulation free from the rental brokers commission, and paying all bills to the landlords instead of the tenants. These are now more common because of the trend of renters becoming owners of their own homes.
"Although we have observed delays in the closure of the gap between the landlord and tenant market, the reluctance to meet the landlord's expectations is, to the contrary, very beneficial to the tenants and the renters the most," said Amit Dutta, Managing Director of CBRE Middle East, in a recent interview. 'The landlord’s proactive incentives which boost market supply will encourage greater market activity and those who have the ability to spend are covered.' Thanks to their recent predictions, the incentives have shifted because of the central apartments, and not the landlord's leases.''
As per Reidin's latest analytics, Dubai's residential market continued its juggernaut of activity in August 2025, adding 38 new projects and nearly 8,000 new units as part of the city's supply. 35 additional projects in the pipeline were also announced.
In Property Monitors, Dubai's project pipeline continues without pause, with more than 50 new project launches in July and 13,800 residential units filling the market having an estimated combined gross sales value of Dh38 billion. In the first seven months of the year, 93,000 units and Dh270 billion in potential sales were recorded.
Softening absorption
“The developers will have to shift from focusing solely on speed toward exanding their focus on product viability, meeting timelines, and pricing strategies. ” Said Property Monitor Property Analyst in their most recent analysis on the Dubai property market. Buyer selectivity is on the rise, concerning market absorption is softening with early signs becoming more pronounced.
The unbroken growth is slowing, taking a break after four straight years with growing prices and skyrocketing rentals. The Dubai market saw a 1.92% rental growth in July, CBRE reports, with the apartment market flat and more detached homes outperforming.
The previous quarters of the market saw double digit growth due and recording heights to the years of the market.
CBRE Analysts state the strategy of crossbuilding by landlords of numerous leased structures is to gain a competitive advantage in the market. ”These fully furnished, modernized, and refined real estate units increase operational prices and largely attract clients desiring convenient, affordable, and streamlined living.”
CBRE highlights compared to the influx of international movers settling to the market, the rebalancing of the market to mature is also prompted by the growing internal migrations from the population looking to relocate.”
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