They affirmed that 2020 is the year of unprecedented cooperation between landlords and tenants

Realtors: Decreases in Abu Dhabi rents by 25%

• The declines were in some areas and projects in Abu Dhabi, especially for new tenants.

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Real estate company officials confirmed that 2020 is the year of unprecedented cooperation between landlords and tenants in Abu Dhabi, to overcome the repercussions of the Corona pandemic.

They explained, to "Emirates Today", that this year witnessed noticeable decreases in rents, especially for new tenants, as they reached 25% in some projects, with the aim of attracting more tenants under the current circumstances.

And they expected that next year will witness remarkable activity in the rental sector, driven by the resumption of business in full force, and the opening of new companies after finding a vaccine for the epidemic.

flexibility

In detail, the director of Platinum Home, Ahmed Salah Rabei, said that 2020 is the year of unprecedented cooperation between owners and tenants to overcome the repercussions of the Corona pandemic, in order to preserve the interest of both sides.

Rabie added that landlords are keen to preserve the current tenants, because they know that vacating the property from the tenant will result in difficulty finding an alternative tenant under the circumstances of the pandemic, which exposes them to financial losses for an unknown period.

He explained that in order to do so, owners showed flexibility, and some of them accepted that the contract should be temporarily monthly, and some of them granted tenants free months, while other owners agreed to postpone the payment of the installment and divide it into two installments, given the current circumstances, in addition to the fact that some owners decided voluntarily to bear the costs of sterilization Residential units for new tenants without their request.

Dips

Rabie indicated that, on the other hand, a large number of tenants preferred to continue their current housing and not move to any other units, in order to avoid transportation costs and for fear of dealing with different workers, as well as carrying out maintenance and decoration operations in the newly rented units in light of the 'Covid' pandemic -19 '

And he indicated that the current year has witnessed noticeable declines in rents in some areas and projects in Abu Dhabi, ranging between 15 and 25%, especially for new tenants to attract more tenants in light of the current circumstances, and he is expected to witness greater activity in the rental sector next year, after reaching a vaccine and returning business. Back to normal.

Individuals

For his part, the director of leasing in the «Care Real Estate Management» company, Muhammad Othman Ayoub, agreed with Rabei that the year 2020 was marked by a great and unprecedented cooperation between owners and tenants, in order to overcome the repercussions of «Covid-19», unlike the past years that have witnessed Each party adheres to the laws governing rents, and each of them insists on taking their rights in full without any concessions to the other party.

Ayoub explained that this cooperation included residential and commercial rent, while it was mainly evident between individual owners more than companies and banks that manage or own real estate.

Facilities

Ayoub emphasized that 2020 witnessed flexibility from owners, in order to mitigate the repercussions of the Corona crisis on tenants and provide various facilities, such as postponing payments, rental checks and lease contracts for periods of 14 or 15 months instead of 12 months to benefit from three free months, in addition to accepting owners. By obtaining rent for a number of late months and exempting the affected tenant from paying the rent of some late months, especially in the commercial sector, which has been affected by the pandemic and the conditions of closure.

He pointed out that the current year has also witnessed rents declines ranging between five and 10% at least for the current tenants in some areas, in light of the flexibility of landlords to keep tenants.

Remarkable activity

In turn, the director of "Correct Info Real Estate", Mazen Latif, said that it is expected that next year will witness remarkable activity in the rental sector, driven by the resumption of business with full strength and the opening of new companies and the introduction of the Corona vaccine.

He indicated that the current year witnessed various price declines, which appeared at great rates that reached 25% for new tenants in some projects, while they were lower rates for old tenants.

Latif indicated that this year could be called “the year of close cooperation between landlords and tenants,” to protect the interests of each party in difficult circumstances for everyone, even if the owner is the “strongest” in light of the repercussions of the pandemic and closures in the commercial sector.

Normal levels

In the same context, the real estate expert and CEO of Medalion Associates, Masoud Al-Awar, said that the levels of rents returned during the year 2020 to normal levels commensurate with the per capita income, indicating that rental values ​​have become less than 30% of income, after it reached Percentages of approximately 60% of income during previous years, considering that this is a corrective situation and is required in the current circumstances.

Al-Awar also considered that the current year was also marked by great cooperation on the part of owners and tenants, which is an unprecedented situation that rises to the difficulty of the circumstances imposed by the pandemic, which required new mechanisms to overcome its effects in the commercial and residential sectors.

Al-Awar pointed out that the great cooperation between landlords and tenants came under the guidance and great support of the state leadership, which emphasized solidarity and consensus to get out of these temporary conditions.

Banks and companies

Real estate developers called on banks and companies that manage real estate to show more flexibility with tenants, noting that a number of banks agreed to reduce rents in some areas to varying rates due to the decline in demand.

They called on those authorities to reduce rents or provide facilities for tenants, pointing out that the institutions currently have two options, either balancing with the market, or leaving it.

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