Samir Salya on Dubai rental bargains

It seems that it could be worthwhile for tenants in Dubai to scout around the brand- new homes arriving in the city to find bargains. This is particularly the case if their own landlords won’t budge on rental negotiations, as it’s likely that they’ll find something within their budget in the new lists.

For example, it’s possible to secure a two-bedroom apartment in Jumeirah Village for Dh65,000 per year. For a similar apartment in Dubai Sports City or Al Barsha, tenants would be looking at spending slightly more at around Dh75,000.

Landlords unwilling to drop rents

Research shows that while most landlords who are renting out older buildings are unwilling to lower their rental asking prices, those in charge of new properties are willing to. It’s likely that they’re simply looking to move with the market and offer potential tenants what they want.

Many landlords of the new properties will have various payments they also have to make, so they’re more likely to agree lower rents to get a tenant in place rather than leave their new property empty for a period of time.

Tenants moving around

The second half of 2017 is likely to see a large amount of ‘tenant churn’, a term used to describe the fact that many tenants will look to move from their existing properties into new ones. It’s during this move that tenants should shop around for the best rental prices, and be prepared to negotiate to get what they want.

The end of existing rental contracts can give tenants a golden opportunity to renegotiate the terms on their lease or simply relocate for better rents. This is what leads to an increased tenant churn, and it’s likely that Dubai will experience this for the remainder of this year. As a significant amount of new units are due to be delivered between August and the end of 2017, the movement of tenants is going to be further increased.

Range of incentives available to tenants

Due to the increasing amount of negotiation between tenants and prospective landlords, there are also more incentives available. For example, landlords are beginning to offer more in the way of extras like furnishings, or even periods of around two months that are rent free.

Obviously, these kinds of incentives will be helpful for tenants who are trying to keep their costs down as much as possible and could entice them move away from their current residence.

Samir Salya

Samir Salya is the Chairman of Reign Holdings and is involved in real estate and construction within the UAE and UK. Samir holds over 20 years of experience in executive management, business expansion, performance improvement, sales and marketing.