Real estate officials said that the current conditions associated with the emerging coronavirus (Covid 19) stimulated a large number of companies in Dubai, Sharjah and Ajman to expand their summer residential rental offers compared to their rates during the summer of last year.
They explained to «Emirates Today» that the facilities provided by companies include granting tenants an exemption from commissions and parking lots, in addition to the companies bearing municipal fees or the value of electricity insurance, while companies have made offers for moving furniture, and great facilities in making payments, in addition to reductions in values Renting rates ranged between 5 and 10%.
Rental offers
In detail, Abdul Karim Al Mulla, CEO of Standard Real Estate Management Company, said that the current rental offers during the summer season include granting the tenant an additional two months in the lease contract for free, in addition to facilities in making payments to become monthly, while companies cooperate in Moving furniture.
He added that the expectations indicate a change in the demand in the rental market during the coming period, as it is expected that the demand will increase with the start of the opening of the air crossings and the return of economic activity in its natural way.
Flexibility to pay
In turn, the general manager of the «Royal Liwan Real Estate Company», Mohamed Hareb, said that the conditions for confronting the spread of the Corona virus have had repercussions on the residential rental market at the beginning of the summer, which was reflected in the companies offering price cuts and various facilities, most notably the flexibility in Payment.
He pointed to offering incentive rental offers to stimulate demand, with real estate management companies preferring to attract tenants rather than leaving a number of units vacant for varying periods.
Exemption policy
For his part, Sufian Al-Salamat, CEO of Somm Real Estate, said that the current summer season witnessed a new variable represented in the Corona virus, which slowed the demand for residential rental during the summer season. He added that this prompted real estate companies to launch offers to stimulate demand compared to last summer's season, including giving one or two months free to tenants, in addition to reductions in rental values ranging between 5 and 10%, which are rates higher than what was offered during the past year. He pointed out that companies that adhere not to reduce rental values by large proportions, they attract tenants by other means such as exemption from the commission rate for the first year, exemption from parking fees, and administrative fees, while companies resort to giving the tenant free months of up to three months, especially in The less demanding areas, in addition to payment facilities, rely on the monthly payment system instead of quarterly payments.
Sterilization tools
For his part, the managing director of the "Harbor Real Estate Company", Muhannad Al-Wadi, pointed to the strong effects that are still on the market regarding the lease level, which led many owners to submit rental offers in conjunction with the summer period, including extending payment plans to 12 checks , And offer free time periods ranging between one and two months, as well as reductions in the annual rental value. He explained that among the offers offered by real estate companies, equipping the buildings with sterilization tools and monitoring devices for the entrants to the building, which are currently an attraction, which gives the tenant a safety element and is an added value to the building, pointing out that many companies include this in their advertisements for their vacant housing units. . The valley stressed that the offers are beneficial to the tenants now, with some wanting to move, with the aim of rationalizing spending in conjunction with the decline in rental values in some places, indicating the move of tenants because of the owners ’strictness in reducing the rental value or payment plans, or providing benefits.
He said that some owners showed lack of sympathy during the crisis in the Coruna virus, which was considered a sufficient reason for transmission.
Boolean offers
Moreover, Raad Ramadan, General Manager of Awad Gargash Real Estate Company, considered that the increase in summer offers for residential rental compared to last summer is logical due to the implications of the Corona virus on the markets. He added that this had caused the rates of cuts to be raised to 10% compared to less than 5% last year. He pointed out that some companies were offering offers in the past year without reducing the rental value, while companies are reducing different rates, as well as offering the tenant free positions, and adding a month or two for free, while the tenants' companies are exempt from the commission rate.
Various offers
Mohamed Turki, director of real estate at Alwaleed Investment Company, said that the residential rental offers this summer are more extensive compared to the summer of last year, due to the implications of the Corona virus. He agreed with his counterparts that the offers are diverse, and vary according to each company and building, depending on demand.
Common benefit
The CEO of D&P Real Estate, Hosni Al Bayyari, said that Corona affected the rental market, just as it does in other markets in the world. Therefore, many owners have made offers to tenants. He added that giving tenants an additional two months in the contract is an appropriate offer, as it provides the tenant with added value, and informs the landlord, who may find it difficult to find a new tenant with the same rental value.
Moving furniture
The real estate broker, Ahmed Baraka, said that at the beginning of the summer season, the real estate market in Sharjah and Ajman witnessed offers to stimulate the demand for residential rental, which included granting two free months, an exemption from parking fees, as well as reductions in rental values.
He added that companies had offered to pay the municipality fees or electricity insurance fees, and to move the furniture.
• Equipping buildings with sterilization tools and monitoring devices for the entrants at present is an added value.
• Offers included reductions in rental values, ranging between 5 and 10%.