These included giving months, free parking, exemption from commissions and discounts

Real estate companies promote their units with "Live and the rest is on us during Ramadan"

• Property management companies have provided incentives to keep tenants.

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Real estate companies in Dubai and Sharjah recently offered competitive offers and expanded facilities for residential rental units during the month of Ramadan. Ramadan.

Real estate company officials indicated to Emirates Today that the calm demand and the lack of preference for most of the tenants to move during the month of Ramadan contributed to the increase in competitiveness among companies to attract tenants, which is one of the positive aspects that keep pace with the variables of the markets.

While tenants reported that since the beginning of the current Ramadan, they have noticed an increase in the offers on offer, and some of them included payment facilities and price reductions of varying rates or exemption from insurance amounts.

Housing units

In detail, the tenant Yusef Ibrahim said, “He noticed when searching for housing units that some units that he had inquired about prior to the month of Ramadan witnessed price reductions ranging between 1000 and 2000 dirhams during the month of Ramadan, in addition to giving some companies offers during the month of Ramadan with grace periods. Free of charge, ranging between one and two months, granted to tenants at the end of the contract.

The tenant Muhammad Hassan added, “The current Ramadan season is witnessing broad competitive manifestations among companies in offering promotional offers on residential rental units, the most prominent of which are companies waiving contracting commission when renting units during the current Ramadan, while in the past they were required to obtain them, in addition to grants. Tenants have free parking, which was granted for a fee before the month of Ramadan.

The tenant, Abdulaziz Mahmoud, pointed out that "the rental offers offered by some companies, some of which were recently raised by the slogan (Live in Ramadan and the rest on us), motivated him with his family to think about moving during the month of Ramadan to a new residence, especially with the near end of the lease contract." , Noting that «the offers provide price reductions, albeit in limited rates, in addition to granting a month or two free, with exemption from commissions and facilities in payment, in addition to the fact that some companies exempt from insurance fees when renting».

Corporate offers

In turn, the real estate expert and head of W Capital real estate company, Walid Al-Zarouni, said that “the offers of real estate companies during the month of Ramadan about residential rental units are positive competitive manifestations in the markets that stimulate the sector and bring benefits to tenants and companies at the same time, especially with the fact that the month of Ramadan is Ramadan usually witnesses signs of calm in the rental sector, with most of the tenants preferring not to move during the holy month, and some resorting to extending rental periods until the end of Ramadan.

He pointed out that «the high offers on the market, during the current Ramadan season, is an indication of increased competitiveness, which increases the services and facilities provided, and reflects positively on the sector, especially as it keeps pace with market variables».

Attracting tenants

For his part, Director of Manarat Al-Shati Real Estate Company, Fouad Jassem, said that “a large number of companies prefer to raise promotional offers to attract tenants during the month of Ramadan, with more emphasis on some offers that contribute to attracting tenants, such as exemption from commissions and the granting of free parking. For cars, in addition to the facilities in payment, some of which reached the monthly payment or through six payments, instead of the four payments as was common before.

He added that «some try to take advantage of these offers and reserve units during the month of Ramadan, and take advantage of the month or two free to move after Ramadan, but with access to the benefits included in the offers currently presented, which have benefits for both parties of companies and tenants».

Rental markets

In turn, the real estate expert, Raad Ramadan, said, “The rental markets are witnessing signs of calm in demand during the month of Ramadan. Consequently, competitive offers from real estate companies are positive aspects that keep pace with market variables and supply and demand policies. Postponing transfers from one residence to another until after the month of Ramadan, ”pointing out that“ the manifestations of competitiveness in offering expanded offers included granting tenants an exemption from commissions, a free month, free parking, in addition to payment facilities. ”

The leasing official in a real estate company in Sharjah, Ahmed Riyad, explained that “the current Ramadan season is witnessing expanded demonstrations in offering offers of facilities when renting residential units compared to previous seasons, in order to stimulate demand rates in light of market variables.” The tenants have facilities to pay in six payments instead of four, with free parking, and grace periods that include one or two months for free, with the end of the contracts, in new buildings for the first inhabitant.

Rental value

For his part, the real estate expert, Muhammad Abu Hareb, said, “The landlords should present more offers to the tenants, and the owner should not be clinging to the rental value, and negotiate with the tenant. Tenants are considered a loss for him, so it is necessary to negotiate with the tenants and provide good offers, especially since we are in the month of Ramadan and the rental movement is weak.

He pointed out that there are a number of landlords in Dubai who make good offers against others who do not make any offers.

Owners and companies

In the same context, the real estate consultant, Ahmed Al-Dawla, said that “there are many promotions in the real estate market on the occasion of the month of Ramadan,” indicating that there are a number of landlords and real estate management companies who provided good promotional offers in the market, which served as incentives for tenants to move with them. Including free months and other services, asking others to do the same.

He pointed out that the owner or his representative in managing real estate should be smarter and more flexible in dealing with market requirements, pointing out that many tenants are waiting to provide incentives, especially at those times of the year.

Ahmed Al-Dawla rejected the behavior of some landlords not to rent or give any incentives to the tenant in anticipation of the possibility of the market improving and the value of the property not declining, which is a wrong concept. The vacant property is a loss for the owner, indicating that the main problem lies in the owners' accustomed to an investment return at levels of 9 and 10%. And it is not present in the market in the current period, as investment returns have decreased to levels in the range of 5 and 6%, due to the effects of the pandemic on the sector in the past period, pointing to the gradual improvement of the rental situation in the Emirate of Dubai.

He called on real estate owners to deal in a realistic manner with the market data at the present time, indicating that real estate investment is like any investment linked to times in the interest of the owner and other times in the interest of the tenant.

Market challenges

"There are many challenges in the rental market, but it is the smart property management company that deals with these challenges to maintain existing tenants or attract new tenants through incentives and offers," said the CEO of Harbor Real Estate, Muhannad Al-Wadia.

He added: “Some real estate management companies have provided incentives to keep the tenant, including offers that include a free month, in addition to dividing payments into 12 checks, and providing good service to tenants,” noting that the rental market recently witnessed a process of “internal migration” from old real estate to Jdeideh, which created a problem for some rental offices, pushed them to offer good rental offers during that period.

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