The simple reasoning behind this is that people who previously shared a unit with 4-5 others now require individual units, said an expert
Published: Wed 6 Aug 2025,
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.
Swapna Tekchandani
“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.”
Ayman Youssef
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.
Humaira Vaqqas
“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.
