The revision of the Real Estate Regulatory Agency (Rera) rental index has not seen a considerable movement of tenants in Dubai to cheaper neighbourhoods. However the outcome could be more evident during times of contract renewal. For families the decision to move homes is usually made before the start of children's academic year.

"The Rera rent index per se does not influence decisions. It captures the current trends and market sentiment" says Ranju Kapoor general manager of Hamptons International.

He adds: "Personal financial conditions are a deciding factor when it comes to moving homes. Tenants also take into consideration the location living condition such as commute time to work and proximity to schools."

Many tenants may also capitalise on the opportunity to move into larger houses and explore options in communities with comparable rents to enhance their lifestyle needs.

However the Rera index revision has helped redirect residents' interest towards certain areas especially after the spike in rents last year.

Spike in interest

"We have seen an increase in leads towards areas where rents have decreased as per the updated Rera index. Some areas are witnessing a significant rise in interest" says Zuhour Majeed content executive at PropertyFinder.com.

According to the real estate website Jumeirah Village Circle which has seen rents dip by 7.4 per cent has generated 36 per cent more leads in January than in December 2015. Palm Jumeirah has also seen a 27 per cent growth in interest compared to the previous month.

As for Jumeirah Beach Residence and Dubai Marina where rents have dropped by 2.3 per cent and 4.7 per cent respectively PropertyFinder has seen a 21 per cent rise in tenant inquiries. International City which has seen rents drop 14 per cent has generated 23 per cent more interest from tenants.

The revised rent index however has not resulted in a fall in rents in areas high in demand such as Downtown Dubai or Business Bay. The revision in most cases has been marginal.

"As the correction is not significant in money terms most tenants are not considering to move from their current locations" says Declan McNaughton managing director Chestertons UAE.

Charges to consider

But there are exceptions. For those among you contemplating to move house keep in mind the moving costs which will include the payment of the property agent fees security deposit utility connection fee moving charges and buying furniture if the previous apartment was fully furnished.

"Moving houses is always a complex decision for any tenant especially those with school-going children. Most movement decisions are led by benefits arising from residing in gated communities with their associated ease of shopping dining and family-oriented activities" explains Hamptons' Kapoor.

"Although rents have declined if one factors in the cost of moving the tenants will end up paying the same amount of money on an annual basis. In some cases where a higher deposit is required it would be better to stay put rather than move out" advises Chestertons' McNaughton.

Tenants must weigh the pros and cons of moving home by calculating the costs and deciding if changing their accommodation is actually cheaper concludes PropertyFinder's Majeed.