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Monthly cheques and rent free periods: Dubai landlords offering enticements.
Dubai real estate market has developed such a conditions today that tenants got a special leeway in negotiating rental terms. But only if they are looking for their first rented home, or being eager to move out in search for a more affordable place to stay.
The second year half in Dubai is about to bring a chunk of new interesting rental offers. Many construction projects are planned for completion by the end of the year, which means a rivalry increase in rental sector. Therefore, many landlords are ready to negotiate in order to secure a stable rental income, Q2 2017 Dubai MarketView by CBRE has revealed.
“The sales market has witnessed an improvement in transaction numbers during 2017, with off-plan properties remaining favourable amongst investors, underlining the speculative nature of the local market,” said Matt Green, head of research at CBRE Middle East.
However, tenants on existing leases in older building are generally not finding the same level of flexibility from landlords, which owners of the newer premises are happy to provide. Many of them pay mortgages for this off-plan properties or have installment pay-offs to consider, and they are not ready to lose a tenant. Therefore, newer apartment owners are usually more inclined to lure tenants with additional bonuses.
“Landlords are increasingly offering enticements such as furnishings, rentals inclusive of Dewa bills, or rent-free periods of up to two months,” Asteco report confirms. Moreover, 12 cheque rental payments become rather a rule, than an exception, as it previously used to be in Dubai.
Given these conditions, the second-half of the year should see the “great tenant churn — where they ditch their current premises and move to new locations,” Asteco said in its report. In 2017, 15,000 new residential units are expected to be delivered, putting significant pressure on rental sector. However, rental prices are still lagging behind this demand upward trend, no matter the market conditions. Quality rental options are still highly appreciated, and renting an apartment, for example, in will cost you a minimum of AED 65,000 pa for a two-bedroom unit, while the same-sized home in is currently being leased at an average of AED75,000, the same as in area.
And if you are looking for a comfortable and inexpensive apartment for rent near Dubai Metro, check out our new . And anyway, IMEX Real Estate will always help you find exactly what you need, or lease out your apartment at the best price.
