The decline in property demand is leading landlords to offer tenants attractive incentives in hopes of stimulating business. These incentives include a three-year freeze on rent and a month’s free rent.
Muhannad Al Wadeya, manager of the Dubai-based Harbor Real Estate, has told the Arabic language newspaper ‘Emarat Al Youm’ that this method is innovative and does not violate any rules and laws set by Dubai Land and Property Department, and is seen as a last resort used by landlords to attract more tenants and keep old ones in order to maintain a stable business.
“Some of them are trying to attract new tenants with an agreement not to increase rent for three years. It is intended to lure in new tenants and stimulate dormant business following decline in demand for property in the recent period,” he added.
Other, more traditional, incentives include free gym and pool access, more instalment plans, in addition to including internet and DEWA in the rent.
These efforts are bound to stimulate the real estate market, especially after the recent surge in rental prices, and are welcome by tenants as long as landlords commit to the incentives they offer.