More UAE residents are opting for monthly rentals. Here's why

The demand for short-term monthly rental units in the UAE is on the rise, driven by uncertainty caused by the war. Analysts report an increase in available units once reserved for short stays, a result of a decline in tourism due to flight cancellations, travel disruptions, and heightened geopolitical uncertainty. Alec Smith, head of sales and leasing at Savills Middle East, explained that the market's shift is from tourist-driven bookings to residents and new arrivals considering purchasing property or signing an annual tenancy contract.

Companies like First Class Property Management have adapted to this shift by offering units on a monthly basis to UAE residents. Luis Santos, co-founder and managing director of First Class Property Management, noted that over 90 percent of their units are now rented on a monthly basis. The company manages more than 600 homes in Dubai, Abu Dhabi, and Ras Al Khaimah, with an average stay of 21 days, up from 11 days previously, thanks to the shift in guest profile.

Monthly rents for properties vary depending on factors like location, building quality, age, furnishings, amenities, and length of stay. In prime locations like Downtown Dubai, Palm Jumeirah, and Dubai Marina, studio apartments range from Dh4,000 to Dh8,000 per month, one-bedroom apartments from Dh5,000 to Dh12,000, and two-bedroom apartments from Dh8,000 to Dh20,000.

Reasons for opting for monthly rentals include the flexibility it provides, especially for travelers, relocating professionals, and residents trying to avoid long-term commitments in a climate of geopolitical uncertainty. The Dubai Land Department launched the Flexi Rent scheme in June, partnering with 12 property companies to assist tenants in paying rent in monthly installments, easing their financial strain.