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Dubai: Rents for studios, 1BHKs rise after crackdown on illegal partitions
Dubai: Rents for studios, 1BHKs rise after crackdown on illegal partitions

Khaleej Times

time7 days ago

  • Business
  • Khaleej Times

Dubai: Rents for studios, 1BHKs rise after crackdown on illegal partitions

Rental rates for studio and one-bedroom apartments in several areas of Dubai are rising, driven by increased demand following a government crackdown on illegal partitioning of apartments and villas. Before the crackdown, many tenants were living in overcrowded spaces, often crammed into single rooms or partitioned units. Since authorities began enforcing regulations, landlords and property owners have tightened their leasing practices, opting to rent only to families and corporate tenants. 'Rental prices have seen a slight increase, particularly for studios and one-bedroom apartments, as demand for these units has risen. Overall, the Dubai Municipality's action has brought more transparency to the market,' said Swapna Tekchandani, consultant at Property Zone Real Estate. Humaira Vaqqas, property consultant at Range International Properties, noted that some areas have experienced an oversupply of larger units as evicted tenants moved out, placing slight downward pressure on rents for those properties. 'There is a higher demand for smaller, legal units — studios and 1-bed apartments demand spike, leading to stable or slightly increased rents in legal small-unit buildings. There is a market adjustment over time, as illegal units are removed, the supply of affordable options shrinks, pushing up legal rent prices in budget-friendly areas. Landlords often pass the cost of compliance, renovations, and missed income on to future tenants by demanding higher rents,' she added. The crackdown by Dubai Municipality and the Dubai Land Department began in June, targeting illegally modified properties in areas such as Al Rigga, Al Muraqqabat, Al Satwa, and Al Raffa, citing safety concerns related to unapproved structural changes. According to Ayman Youssef, managing director of Coldwell Banker, this enforcement is expected to drive demand for rental units in specific areas. 'The simple reasoning behind this is that previously 4 to 5 people were sharing a unit, but now those people will require individual units.' Up to 20% rent hike in Al Nahda, Sharjah Youssef added that many evicted tenants are likely to relocate to more affordable areas on the outskirts, such as Al Nahda, or even to other emirates like Sharjah and Ajman, where rents remain comparatively lower. Swapna noted that Sharjah has traditionally offered spacious units that were often shared among multiple occupants. 'Following the crackdown, many of these units are now being rented out to single tenants, contributing to an overall increase in rental prices. In Al Nahda, however, prices were already on the higher side due to its prime location and proximity to Dubai,' she added. Vaqqas observed that short-term leasing is becoming more common in the wake of the displacement. She pointed out that many former tenants from Dubai have moved to Sharjah – particularly Al Nahda, Al Majaz, and Rolla – due to more lenient sharing regulations and lower rents. 'Reports suggest Sharjah's Al Nahda saw 10 to 20 per cent rent increases in some buildings within months of the Dubai crackdown. Availability issues are on the rise after this crackdown; cheaper apartments are getting booked faster, especially near the Dubai border for easy commuting,' said Range International Properties' consultant. Overall, Vaqqas emphasised that the crackdown has had a positive effect for both landlords and tenants, encouraging legal rental practices and improving living standards.

Dubai landlords remove illegal partitions, prefer to rent flats to families over bachelors
Dubai landlords remove illegal partitions, prefer to rent flats to families over bachelors

Khaleej Times

time04-08-2025

  • Business
  • Khaleej Times

Dubai landlords remove illegal partitions, prefer to rent flats to families over bachelors

Landlords and property owners in Dubai, who are bringing back their properties to the market after authorities imposed a crackdown against illegal partitioning of rooms and flats, are preferring to let their properties to families, especially small ones, and corporate clients. Many of these owners who were not aware of their properties being sublet and multiple people living there illegally are now checking Emirates ID, job profiles, and previous history of potential tenants. Led by Dubai Municipality, authorities in the emirate launched a crackdown against partitioned rooms in several areas of the emirate in the fourth week of June due to risks posed by illegal and unapproved structural modifications and partitions. Most of these crackdowns were targeted in densely populated areas such as Al Rigga, Al Muraqabbat, Al Satwa and Al Raffa areas. 'Landlords who were not aware of the situation are more conscious now and renting their properties by checking tenants' documents like Emirates ID, job details and previous history. They're preferring to rent to small families or corporate leases. Instead of renting to multiple unrelated tenants in small rooms, they are targeting single-family or corporate staff housing to stay compliant,' said Humaira Vaqqas, consultant at Range International Properties. 'Previously, many of these properties were rented out to single bachelors. However, landlords are now increasingly preferring families as tenants, seeking greater stability and long-term, sustainable occupancy,' said Swapna Tekchandani, consultant, Property Zone Real Estate 'Tenants are now more cautious following the sudden implementation of this rule. Landlords, are legally obliged to comply and are largely in agreement as it benefits them, allowing them to deal with a single tenant for rent payments rather than managing multiple occupants within one unit, ' she said. Legally, in Dubai, a tenant is not allowed to sublet a rented premise without the written consent of the landlord or property owners. According to Article 24 of the Dubai Tenancy Law, 'Unless otherwise agreed by the parties to a lease contract, the tenant may not sublease, or assign the use of the real property to third parties unless the relevant written consent of the landlord is obtained.' Repairing, removing partitions Humaira Vaqqas said many landlords are removing illegal partitions and restoring the original layout to comply with Dubai Municipality regulations. As reported by Khaleej Times, some landlords are spending up to Dh45,000 to renovate and repair their properties due to illegal partitioning and structural damages. According to Ayman Youssef, managing director at Coldwell Banker, landlords and property owners affected by the removal of illegal partitions are now focused on restoring their units to comply with regulations. 'Many are undertaking full renovations to convert partitioned spaces back into proper single-family units. These renovations often involve repairing structural damage, including ceilings and flooring, caused by the earlier modifications. Once the properties are fully renovated and brought up to standard, they will be reintroduced to the rental market,' he said.

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