Dubai Rental Market Weathers Regional Tensions With Flexible Payment Plans

(MENAFN- Khaleej Times) [Editor’s Note: Follow Khaleej Times live blog amid ** US-Israel-Iran war** for the latest regional developments.]

Dubai landlords are increasingly offering flexible payment plans, such as more cheque options, to attract and secure tenants. This is driven by a sustained increase in residential supply expected between 2026 and 2028. Despite regional tensions, the rental market remains active, and landlords are adapting to maintain occupancy and cater to tenant needs for clarity on payments.

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The shift comes as Dubai’s rental market continues to see steady activity despite the ongoing Iran-Israel-US war, with more than 1,200 tenants inquiring over the last eight days alone, data by real estate firm Betterhomes reveals.

These recent leasing insights from the company point to a market that is still moving, with tenant enquiry levels continuing to exceed the number of new rental listings coming to market.

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“We understand that many people are looking for reassurance right now,” betterhome’s Director of Leasing, Rupert Simmonds, said.“What our data shows is that Dubai’s leasing market is still functioning.” Tenants continue to search for, renew, and move homes, he added, which shows how the leasing market is able to withstand regional uncertainty.

He added that many tenants and landlords are currently seeking clarity around renewals, payments structures, and upcoming moves. Some landlords are also offering more flexible payment structures, according to the firm. Properties that were previously marketed on one or two cheques are, in some cases, now being offered with additional payment options to help secure tenants, it found.

Before tensions drastically escalated on February 28, the city’s property boom hit a record Dh916 billion amidst a growing population and improved borrowing conditions.

And although enquiry levels have dropped 45 per cent lower than typical levels, betterhomes suggest that engagement levels across digital platforms has remained consistent, implying that many potential buyers are still eyeing the market.

“The market has become more measured, but it hasn’t stopped,” Simmonds said.“In the current environment, accurate pricing, flexibility and strong local insight are making the biggest difference. Our role is to help clients navigate that with clarity and confidence.”

** Evolving market**

Market dynamics may also evolve further as new supply enters the market. According to property consultancy Colliers, Dubai recorded the highest volume of residential completions in its history in 2025, with the off-plan segment continuing to underpin sales activity amid a steady flow of new launches and increasingly flexible payment structures.

The report notes that the scale of the development pipeline could influence rental and pricing dynamics in the coming years, with performance expected to vary by asset quality, location and pricing. As more projects come online, well-positioned and competitively priced properties are likely to perform strongly, while others may rely more on incentives and flexible payment structures to maintain occupancy.

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