If you’re a tenant in Dubai’s residential market then you can look forward to holding more power when it comes to your residency contract.
According to a new report, landlords are becoming more generous in their rental negotiations, which means tenants are prepared to make requests that would have been previously ignored.
There have been several reports that show landlords have no choice but to become more flexible when dealing with new tenants because of the increase in the number of available property units. Landlords can’t run the risk of having an unoccupied property.
According to a report by real estate advisor CBRE, residential sale prices have fallen nearly 1% during the second quarter. And now the sector looks like it’s moving towards the bottom of the market with a 2% drop recorded every year.
Although this news will be welcomed by most tenants, if you currently rent then you could be at a disadvantage. Tenants who have an existing lease have found they haven’t experienced as much flexibility with their landlords. This was confirmed by a survey carried out by compareit4me earlier in the year. But some good news is that rental increases are becoming more uncommon.
Due to a surge in residential property in Dubai Silicon Oasis, JLT and Business Bay, you can expect further rent decreases. So, if you can’t negotiate with your landlord to decrease your rent then you can always look somewhere else.
Dubai is gearing up for Expo 2020, which means the property market continues to grow at a rapid rate and due to the increase in supply that only means one thing for tenants. There will be a decrease in rental trends and greater flexibility in leasing terms. Best make the best use of these low rates while they last.
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