The gap between the number of lease renewals and new tenancy contracts is narrowing in Dubai.
Real estate industry executives said the majority of tenants in Dubai continue to prefer lease renewals due to higher rentals, but the delivery of new units in the markets is giving them options to move to new areas in the outskirts, resulting in the narrowing of the gap between lease renewals and shifting to new units.
“Tenants still broadly favour lease renewals to avoid higher costs of new contracts, but this gap is narrowing as more new projects are delivered further from the city centre, offering more competitive rates and larger unit sizes,” said Matthew Green, head of research for Mena at CBRE.
He added that new developments are attracting tenants who are looking for more affordable options without compromising on space and amenities.
