For three years, Dubai landlords set the terms at renewal. That has changed. One in five renewals in the third quarter of 2026 was at a lower rent. If your tenant has asked for a cut, here is what the law says, what the market shows, and how to decide.
By Umer Shauket, Founder & CEO, Cresco Real Estate. RERA ORN 34288. Published 8 November 2026.
The short answer
- In Q3 2026, 21.4% of Dubai renewals were at a lower rent, up from 4.8% in Q1.
- Either side must give 90 days’ notice to change the terms at renewal.
- You cannot evict a tenant just for refusing your price; the law allows eviction only for set reasons with 12 months’ notice.
- One empty month costs 8.3% of the year’s rent. A small cut to keep a good tenant is often the cheaper choice.
What the market shows
Cavendish Maxwell found that 21.4% of renewals in the third quarter of 2026 were at a lower rent, against 4.8% in the first quarter. 38.7% renewed at the same rent and 40% at a higher one. Average rent was AED 77.3 per sq ft, up 5.5% on a year earlier against 11.5% growth the year before (Khaleej Times).
Tenants are not leaving the market. fäm Properties counted 339,557 freehold rental contracts from January to October 2026, up 6.8% (Arabian Business). They are simply comparing more, and new supply gives them more to compare.
What the law says
- Notice. Either side that wants to change the terms at renewal must give at least 90 days’ notice before the lease ends (Article 14, Law No. 26 of 2007 as amended).
- Eviction. After the lease ends, you can recover the unit only to sell it, use it yourself or for a first degree relative, or to demolish or rebuild, with 12 months’ notice through a notary public or registered mail (Article 25).
- Increases. Decree No. 43 of 2013 caps increases by how far your rent sits below the average for similar units, from no increase up to 20%. The Dubai Land Department’s Smart Rental Index, launched in January 2025, sets those averages using a building classification that looks at quality, maintenance, location and services.
In plain terms: you cannot force your price, and the tenant cannot force theirs. If you cannot agree, the tenant can stay on the existing terms or leave, and disputes go to the Rental Disputes Center.
What this means for a landlord
Count the cost of an empty month. One month without rent is 8.3% of the year’s income, before agency fees, cleaning and wear between tenants. Two months is 16.7%.
| Choice | Cost as a share of a year’s rent |
|---|---|
| Agree a 5% cut | 5% |
| Agree a 10% cut | 10% |
| One empty month | 8.3% plus agency and turnover costs |
| Two empty months | 16.7% plus agency and turnover costs |
Imagine your tenant pays AED 90,000 and asks for AED 85,500, a 5% cut. Saying no and losing them costs AED 7,500 for each empty month, before fees. If the unit would take more than three weeks to relet, the cut is the cheaper path. If similar units nearby are renting above your current rent, hold firm and show the evidence.
Check the evidence first. Look up the rental index for your building and recent registered rents for similar units. If the tenant’s request matches the market, negotiate. If it does not, explain why with the numbers.
Trade, do not just cut. A longer lease, fewer cheques, or a tenant who pays the first months upfront can be worth more than the headline rent.
Improve the building’s case. The Smart Rental Index rewards quality and maintenance. Fixing what tenants complain about supports the rent you ask for next time.
For the full rules, see our landlord and tenant guide and our rents update.
The honest limits
Market figures are city wide; your building may differ. This is general information, not legal advice. If a dispute is likely, speak to a lawyer or the Rental Disputes Center before you send notices.
Frequently asked questions
Can my tenant ask for a lower rent at renewal in Dubai?
Yes. Either side that wants to change the terms, including the rent, must give at least 90 days’ notice before the lease ends, under Article 14 of Law No. 26 of 2007 as amended.
Can I evict a tenant who will not pay the old rent?
Not for that reason alone. After a lease ends, a landlord can recover the unit only for specific reasons such as sale, own use or demolition, with 12 months’ notice through a notary public or registered mail. Disputes go to the Rental Disputes Center.
Is a rent cut cheaper than an empty month?
Often. One empty month costs 8.3% of a year’s rent before agency fees. A 5% reduction to keep a reliable tenant costs less.
Sources: Khaleej Times, Cavendish Maxwell Q3 2026; Arabian Business, fäm Properties, 6 November 2026; Dubai Law No. 33 of 2008 amending Law No. 26 of 2007; Dubai Decree No. 43 of 2013; Dubai Land Department, Smart Rental Index 2025. General information, not legal advice.