Real estate officials said that during the summer, the real estate market in the country is witnessing significant competitive manifestations in value added offers, to meet the calm demand, including granting tenants a month or two free of charge in the lease, or free parking, as well as additional price reductions by more than 5% , The cancellation of commissions, and the reduction of fees for administrative real estate companies.
They assured Emirates Today that it is now a good opportunity for tenants to get good rental deals to move to new housing units, with better specifications than they have.
Motivate tenants
In detail, tenant Mahmoud al-Sayyed said that an advertisement he read in a publication, including an offer from a Dubai real estate company for a two-bedroom apartment unit, encouraged him to make the decision to move out of his current unit, rather than extending his lease until the summer holiday season. The offer is free of commission, payment facilities and free parking, as well as a reduction in the rental value compared to its price two months ago.
In turn, the tenant Ibrahim Mohammed said that he decided to move from his housing unit shortly before traveling for the summer vacation after noticing the reduction in rental values, facilities in administrative fees, and the abolition of the commission.
Tenant Hassan Yousef said that he had invested the summer to move from his residential unit to a neighboring building in the Al Khan area of Sharjah, offering a two-bedroom apartment and a rental value of 32,000 dirhams, after being offered at 35,000 dirhams two months ago. He stressed that the offer was attractive and included an exemption from the standard commission by 5% of the value of the contract, and the administrative fees of the company.
For his part, the tenant Tamer Ali, said that the discount offers and payment facilities in rental values during the summer season, which is characterized by calm demand, made him offer his return from vacation to take advantage of those offers, and prepare to move from his current residence to a housing unit with better specifications in terms of location and facilities.
Quiet market
Raad Ramadan, general manager of Awad Gargash Real Estate Company, said that most tenants do not prefer to move to a new home during the summer, preferring to extend the contract until his return from the summer vacation, which causes calm in the rental market during That period, in turn stimulates real estate companies to put up many offers and tools to stimulate markets, and attract tenants.
He added that this summer saw more calm rates compared to 2018, referring to the concentration of leave in only two months instead of three months last season, which made the largest number of tenants travel during that period.
Ramadan stressed that the quietness of the real estate market raised the offers, whether by granting free months, waiving commissions or reducing them in large proportions, in addition to the flexibility of companies in offering discounts at different rates, up to AED 2000 of the rental value.
He pointed out that the real estate companies consider the facilities and offers granted to tenants a good way satisfy all parties, and help them in the occupancy of their housing units instead of leaving two full months without occupancy.
Competitive manifestations
Sufian Al-Salamat, CEO of SOM Real Estate, said that this summer season is witnessing significant competition among real estate companies to attract tenants in the UAE markets through offers such as granting tenants free month or two in the contract, with facilities in rent fees, and reduction It ranges between 5 and 6% for some properties, in addition to facilities in the number of payments.
He added that the rates of discounts granted during the current summer, which did not exist during the summer of 2018, vary from region to region, there are areas with high demand did not see significant changes, while the offers and discounts rise in areas with less demand.
He attributed the slow demand for housing units compared to summer last year to the short summer vacation period and the concentration of tenants travel, and the presence of calm in general demand in various markets increased pace during the summer season, which in turn raised the offers in the market.
Good deals
The general manager of Emperor Real Estate Broker, Shahriar Al-Attar, agreed that the current summer season witnessed a lull in rental demand for residential units in some areas, compared with the volume of demand during last summer, with the short summer vacation period and the travel of most dealers during that time. Period.
He pointed out that this led to the flexibility of real estate companies, by granting discounts of up to 5% on some housing units and in some areas to attract tenants, rather than leave the units vacant, in addition to value-added offers such as free parking, and repayment facilities that allowed the opportunity to repay Monthly.
Al-Attar considered that the current time is a good opportunity for tenants to get good deals to move, although most tenants do not prefer to move from one house to another during the summer season.
Positive competitive
Raed Abu Joudeh, the leasing official at Al Buhaira National Insurance Company, said that during the summer this year, real estate companies offered competitive offers to attract tenants more extensively than last summer.
He explained that the companies expanded their offers through the provision of a month of residence free of charge, and parking, in addition to the reduction of fees in varying rates, pointing out that the rates of reductions in the lease contract vary by region, size of turnout, and the number of vacant units in the buildings of the real estate company.
The real estate broker, Magdy Abdel Aziz, said that in the face of calm and slow demand during the summer season, real estate companies follow the method of flexibility with tenants, and give them facilities to repay, up to the monthly repayment, in addition to discounts ranging between 5 and 10% in contracts, Or cancel the commissions, which positively raise competitiveness in the markets.
He pointed out that the offers are increasing in buildings that contain a larger number of vacant apartments, especially in the old buildings that lack of attractive facilities for tenants.
Deferred check
Hatem Mohammed, the leasing and real estate broker at a real estate company, said some real estate companies had agreed to provide a deferred check for rental insurance, not cash.
He said that the two-bedroom units are the slowest in summer demand compared to the one-bedroom units in the Sharjah market, for example, noting that the offers vary from company to company according to the number of vacant units in their buildings.
It was agreed that the summer season was a strong opportunity for tenants to avail themselves of the facilities offered and to obtain suitable rental deals.
Drop resistance
Ikrami Hammad, head of the Abu Dhabi branch of Green Valley Real Estate, said that the summer season is quiet in the rental market, as there are a large number of tenants on vacation abroad.
Hammad explained that some landlords prefer to leave housing units empty during the summer months, because they know that rental values fall in the summer, and resist further decline, and therefore prefer to rent housing units from September.
Hammad revealed that it is currently possible to rent a one-bedroom apartment in the Abu Dhabi market with values starting from 40 or 42 thousand dirhams annually compared to 55 or 60 thousand dirhams last year, while the rental value of a two-bedroom apartment ranges between 55 and 60 thousand dirhams, compared to about 75 Thousand dirhams last year. Rent values on Al Reem Island for a one-bedroom apartment unit have fallen to 68 to 70,000 dirhams from 90 to 92,000 dirhams last year.
He stressed that many owners continued to offer some incentives and facilities without reducing the rental value, such as providing a month for free, and flexibility in the mechanism of payment to become monthly instead of four installments.
Mohamed Osman Ayoub, the leasing manager at Real Estate Management Company, said the summer period is quiet in the rental market as it is the main holiday season.
He explained that the introduction of the income requirement instead of the profession to bring the families of residents will create an active movement in the real estate market, especially in the old buildings, which is expected to increase demand, which makes the market more coherent and avoid a significant decline.
He pointed out that some landlords offer some facilities and incentives to activate the market during the summer, most notably granting one or two months free of charge in the contract period, and facilitate payments in accordance with the tenant's circumstances.
Tenants opted not to move until the end of summer
Tenant Akram Masoud has said he wants to move to a new residential unit in Abu Dhabi to take advantage of the rentals, but has delayed the move until the summer season ends.
The tenant, Rami Abdel Karim, said that he had considered moving to another housing unit, but he found it short because he was on an annual holiday and could not decide on the choice of apartments, pointing to some incentives. He explained that he expected a further decline in rental values during the summer months.
For her part, tenant Salma Jalal, she postponed the move to another apartment until returning from the summer vacation, pointing out that she was hoping for a further decline in rental values so that she can move to an apartment more space.
Malka Real Estate: Dips are stimulating to attract tenants
Real estate owner Khamis Mohammed said that the summer period is very calm in demand, stressing that the owners are convinced that it is better to wait until the end of the summer season, with incentives to help rent the apartments.
The owner Sultan Abdullah said that the current decline in rental values is a catalyst to attract more tenants, noting that further decline will lead to the failure of some landlords to meet obligations, whether bank or maintenance.
Good: the quiet summer real estate market is a normal situation
Nader Hassan, Chief Executive of Skyline Real Estate Brokerage in Abu Dhabi, agreed that the real estate market is calm during the summer season, considering it a natural situation due to the long summer holidays.
He added that it has become difficult for landlords to reduce rental values in large proportions after the significant decline witnessed in the market since the beginning of this year, pointing out that some owners are seeking to provide incentives and facilities instead of reducing rental values, most notably free months, and facilitate the payment of payments, and only rent insurance In the form of «deferred check» payment.
The requirement of income rather than the profession to bring in the families of residents would create an active movement in the real estate market and increase the demand for old buildings and particularly divided villas.
Muslim: a natural property cycle controlled by tenants
Reza Musallam, general manager of Truth Economic Consultants, said that property owners will not be able to afford the units to remain vacant for a long period of time and will further reduce rental values.
"The real estate correction should take its course to the end in accordance with the laws of supply and demand," he said, pointing out that the real estate market can now be described as a "tenant market", ie controlled by tenants as was "angel market" controlled by owners years ago.
He explained that this is a normal and normal real estate cycle that should not be worried about, pointing out that the market witnesses a different real estate cycle every five years.
Zarouni: Summer is an opportunity to benefit from good deals
Walid Al Zarouni, Director of W Capital Real Estate, said that the quiet rental markets during the current summer season are higher than last year's summer season, as the markets are witnessing from the beginning a correction and calm manifestations increased significantly as dealers travel during July and August for holidays This, in turn, increased the competitiveness of companies in offering offers that benefit companies not to leave housing units empty, and tenants to get good transport deals. He added that the reductions in administrative fees and commissions exceeded 5%, in addition to facilities in the payment mechanism to become six payments, or monthly.
He added that the offers also include value-added offers such as free parking, with a month or two free for new tenants.
Al-Zarouni said that some tenants do not prefer moving during the summer season, and is working to extend the lease contract for one or two months even if he does not travel, while the move is currently an opportunity to benefit from good deals, especially since the prices of furniture moving companies offer incentive offers during that period Also.