- Owners of apartment and villas are open to negotiation with their current tenants.
- The residential rental market of Dubai in the first three months of 2017 witnessed a drop of an average 1 percent rate as compared to its previous quarter.
In Dubai, apartment owners are adopting various measures to keep their tenants due to the current low movement in the market, according to reports. Owners of villas and flats are opting for reduced rents and extension of the lease to ensure that the tenants do not vacate their premises.
The Gulf News quoted property analysts in Dubai as saying that usually, landlords are that flexible. However, the present circumstance has forcing them to extend the contract period without increasing rents. Quoting an adviser of real estate services the report stated that almost globally the rental rates are falling due to which landlords are becoming flexible allowing tenants to negotiate and quoting rents.
This is basically a strategy to keep the income coming in by preventing tenants from leaving the apartments and villas. However, once the market starts picking up this recent trend of owners’ flexibility will fade away.
According to CBRE, a research and consultancy firm, the residential rental market of Dubai in the first three months of 2017 witnessed a drop of an average 1 percent rate as compared to its previous quarter.
The declining of rate has led to shifting of power from the landlords to the tenants. Earlier, owners would set the terms of the contracts leading to some unfair practices. However, now the owners are ready to negotiate and open to various tenant-friendly contractual terms. In fact, this trend may continue to the rest of the current year.
Last Updated 31, Mar 2018, 6:38 PM IST