Rents Agreed during September at Shoreline Palm Jumeirah
Gareth Davies - Award Winning Broker and Property Consultant

Even before the events of February 28, Shoreline’s rental market was stabilizing as tenants hit the upper limits of affordability. The regional uncertainty that followed led prospective renters to monitor the market rather than sign new contracts, causing a sharp dip in transactions during March and April. While new tenancy agreements increased during May and June, new leases to new tenants were being agreed at lower average rents than those achieved throughout 2025.

Shoreline: Market Trends and Rents Agreed.

The change in market composition is quite clear. January to April was renewal-dominated, with renewals accounting for between 57% and 67% of contracts. From May onwards, the balance shifted markedly towards new leasing, with new tenancies representing about 54–59% of activity in May, July, August and September.
Most notably, August and September both recorded 58.7% new leases versus 41.3% renewals. Across the whole January to September period, however, the market remains almost perfectly balanced: 49.5% new leases and 50.5% renewals.
The number of new tenants committing to long-term leases declined during March and April, a period when geopolitical uncertainty in the region appears to have made some prospective tenants more cautious about entering into new rental commitments.
From May through September, however, the number of new leases increased noticeably. This improvement appears to have reflected a combination of greater confidence following the 8 April ceasefire, more realistic rental expectations from a growing number of landlords, and increased flexibility in tenancy terms. In particular, landlords became more willing to negotiate on asking rents and to accept a greater number of rental cheques, making properties more accessible to a wider pool of tenants.

The recovery in leasing activity from May onwards did not mean that all Shoreline apartments were performing equally. Tenant demand remained noticeably stronger for renovated and upgraded properties, and this had an important influence on the average rents achieved during the period.
As a result, during March and April the average rents expressed in AED per square foot remained above pre-war levels partly because a disproportionate share of the apartments successfully securing new long-term tenants were renovated units. These properties continued to command a premium where the quality of the refurbishment, presentation and overall condition justified the higher rent.
By comparison, apartments that were well maintained but still retained their original kitchens, bathrooms and finishes generally faced greater resistance from tenants. In a more price-sensitive market, these units often required a meaningful rental discount before they became competitive with renovated alternatives.
This created an increasingly clear two-tier rental market within Shoreline Apartments: upgraded properties were better positioned to defend stronger rents, while original-condition units depended more heavily on realistic pricing and flexible tenancy terms to secure tenants within a reasonable period.

Key Considerations for Owners:

Vacancy Rate Risk: Just 18 days of vacancy erodes 5% of annual rental revenue.

Modernization Demands: Un-renovated apartments with original fixtures are harder to lease, as tenants increasingly expect modern, European-standard finishes with bright cabinetry, matching appliances, and contemporary bathrooms.