They confirmed that the procedure is done by controlling a large number of buildings
Realtors: Standardizing rental values is a “mistaken practice” by real estate management companies
Real estate management companies control and control certain areas.
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Realtors reported that some real estate managers in a number of emirates are unifying the rental value in some areas, by controlling a large number of buildings, without adhering to market fundamentals, in terms of supply and demand.
In statements to "Emirates Today", they called for leaving the determination of the rental value according to the mechanisms of supply and demand, to reflect the actual market performance, down or up.
In detail, the real estate expert, Muhammad Al Ali, said that "a number of companies that control real estate management in some areas set and standardize rental prices," adding that these companies standardize prices as much as possible.
For his part, the general manager of Awad Gargash Real Estate Company, Raad Ramadan, said that “there are already a number of real estate management companies that control some areas, by standardizing rental values, and no other real estate office can deal with the property, except through The company controlling it,” he explained, explaining that the prices are significantly high and inappropriate.
In turn, the CEO of "Stratum for Owners Association Management", Saeed Abdul Karim Al-Fahim, said that "real estate rents have increased, despite some statements that there has not been an increase in prices, and that what happens is otherwise, as some companies agree among themselves on the price increase.”
Al Fahim stressed the need not to allow brokers to control the market, and increase prices with regard to real estate rents, pointing out that the real estate broker seeks to increase its commission, which helped raise prices in the market, unlike banks that rent, slightly, below the market price.
For his part, the managing director of Harbor Real Estate Company, Muhannad Al-Wadih, said that "real estate management companies control and control some areas," pointing out that supply and demand determine the market price, as the increased supply in the market pushes owners and management companies to reduce prices. or provide added value.
Al-Wadiya called on management companies and owners to adopt a long-term policy, which is to maintain good tenants and attract new tenants.
In the same context, the real estate consultant, Ahmed Al-Dawla, said that “the problem lies in the lack of follow-up to these by the regulatory authorities,” stressing the need for there to be a difference for these companies with regard to rents in the existing areas, and it depends on the property and the evaluation of the building, and the evaluation is from the competent authorities. According to the infrastructure and its quality, and finishes.
He pointed out that the Department of Lands and Properties, for example in Dubai, can assign someone to inspect the building, on the basis of which the building is evaluated and the value of rents is determined.
He continued, "If real estate management companies follow this correct system, it will benefit the owners, companies, and the tenant as well."
In turn, the Director-General of the Royal Liwan Real Estate Company, Muhammad Hareb, said that "raising rental values affects the final consumer, as he is not able to pay the high rental value," adding: "Here the conflict occurs between the parties (the owner and the tenant)," It may reach the Rental Dispute Resolution Center, but this rarely happens.”
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