Tenants consider them unprecedented offers, and real estate professionals see them as a reflection of the variables of supply and demand.

Real estate in Sharjah.. Facilities up to 6 months free of charge in return for “fixing” the rental value

• The real estate market is witnessing remarkable competitive manifestations in value-added offers.

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Tenants of residential units in Sharjah confirmed that several real estate companies have recently expanded their value-added offers to tenants, as an alternative to reducing the rental value.

They explained to "Emirates Today" that some companies offered unprecedented facilities, including giving tenants five months for free, and up to six months when contracting for a period of two years, in addition to bearing the fee for ratifying rental contracts, and gifts that included complete kitchen appliances, pointing out that the return for this is value-fixing. rent and not reduce it.

In turn, officials in real estate companies attributed this real estate behavior in the market to the desire to attract tenants without offering a reduction in rental values, which in turn preserves the market value of buildings and residential units, pointing out that these offers are a reflection of the variables of supply and demand policies in the markets. .

Unprecedented facilities

In detail, the tenant, Muhammad Hosam, said that he found offers in the real estate market in Sharjah, which include offering five months free in the contract when renting from a company that has multiple buildings in the “Al Nahda” and “Al Khan” areas, indicating that the company rejects any attempt to obtain a reduction in rental values.

For his part, the tenant, Adel Abdel Halim, stated that while he was searching for a new housing unit to move to, he noticed a significant expansion in the offered offers, including unprecedented facilities, some of which included five months for free, at a time when another company offered six months for free, provided that a rental contract For two years, in addition to free parking, and payment facilities of up to 12 payments.

He explained that these companies adopt offers of facilities or value-added services to tenants, as an alternative to reducing the rental value.

The tenant, Moataz Hammad, agreed that the rental real estate market is currently witnessing remarkable competitive manifestations, some of which are unprecedented, such as offering a free six-month company when renting for a period of two years, or bearing the contract certification fee at the municipality department, which amounts to 4% of the total rental value, in addition to Giving tenants free gifts for kitchen appliances, including a washing machine, refrigerator, and oven, with an exemption from commission fees, and added that these offers, despite their attractiveness, do not include discounts in the rental value.

Added Value

In the same context, the tenant Ashraf Ahmed stated that the unprecedented offers in the rental market in Sharjah are currently concentrated in value-added facilities and services for tenants, whether by giving free electronic devices as gifts to tenants, or free parking for vehicles, in addition to bearing the fee for attesting rental contracts, and payment facilities. Payments up to 12 payments.

He explained that these offers are counterbalanced by the refusal of real estate management companies to grant additional reductions in the value of annual lease contracts, similar to the periods of the first half of this year, pointing out that the free three-month offers during the first half of 2021 were unprecedented, and increased to reach five months recently. , which is a development in indicators of competitiveness in the market.

Market value

In addition, the CEO of Al Som Real Estate Company, Sufian Al Salamat, said, "The markets are currently witnessing remarkable competitive manifestations in value-added service offers, some of which included unprecedented offers in the free months, or bearing a fee for ratifying contracts with the municipality department." Pointing to the high competitiveness among real estate management companies in attracting tenants, without offering reductions in rental values, following the gradual reductions that the markets have witnessed since the beginning of the Corona virus (Covid 19) pandemic.

He added that the companies' focus on expanding the facilities provided to tenants, instead of rent reductions during the recent period, is due to the aim of maintaining rental values ​​at their current levels, indicating that this supports maintaining the market value of residential units and buildings when considering selling later.

Price Indicators

For his part, Chairman of the Representative Committee of the Real Estate Sector at the Sharjah Chamber of Commerce and Industry, and Chairman of the Al-Ghanim Real Estate Establishment, Saeed Ghanem Al-Suwaidi, said that the recent expansion of competitive offers aims to provide new additional facilities and benefits for tenants, and at the same time supports the maintenance of current price indicators. This brings different advantages to both tenants and companies.

He explained: "Companies benefit by maintaining the rental value by continuing at those same values ​​when renewing contracts, while these facilities give tenants benefits that carry a financial value in their content, whether in the free months, or parking lots, or bearing the contract certification fee."

Al-Suwaidi pointed out that these offers are a reflection of the changes in supply and demand policies in the markets, which change both in the nature of the offered offers or even in terms of prices, whether in terms of rise or fall, and these offers also include buildings that include large vacant units such as new buildings that owners want to its occupancy speed.

motivational offers

The real estate broker, Ahmed Bakr, considered that most real estate companies currently prefer incentive offers for the so-called “value-added” services, instead of price reductions in rental values, for the main reason related to the fact that these offers are granted only once, while reducing rents continues upon renewal of contracts. In addition to the fact that these offers maintain occupancy rates in the buildings, and most of them are concentrated in new buildings.

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