A dizzying rent decline in Dubai...
across all areas and sizes!! Seems a dream scenario.
But the last report of Landmark in June reveals that the news of falling rents is no illusory bubble.
Rents in Dubai have come down by sizable amounts and this is an opportune time for leasing property.
In the Palm Jumeirah rents have dropped by 6%, at the Jumeirah Towers by 10% and at less up market places like the International City, rents have declined by a whopping 22%.
This is a trend that is being reflected in commercial properties as well.
At the Big Bay property rentals have dropped by 8% while at the Dubai Silicon Oasis rentals have dropped by 20%.
The Burj Dubai that is currently one of the most recognizable buildings in the world has 9 freehold residential tower blocks offering one, two and three bed roomed options at affordable rates, Luxury apartments and penthouses with all modern amenities and state of the art technology are all available at reasonable rates.
Rents are falling irrespective of quality of property or location of property.
Even prestigious up market areas have not been spared.
The reason for this drop is a short term oversupply.
Post the crash of the Dubai financial markets, the property market too faced the prospect of an exodus of expatriates and foreign workers returning home because of job layoffs.
Moreover property development by then had flooded the market with living and working options.
This has led to a market that is for the time being saturated with supply, thus it has tilted towards the buyer.
This buyer's market means that potential owners and tenants now are in an advantageous position.
They have the twin advantages of greater choice and lease reduction when leasing property in Dubai.
With a buyer being in a strong position concessions are being offered by all owners who now find themselves under pressure to offer competitive prices, sometimes even below asking rate.
The lessees too have become savvy and discerning, negotiating hard.
Tenants are now being able to leverage alternate options in order to negotiate attractive deals for themselves.
They are being able to upgrade themselves to more prestigious locations or more spacious accommodations.
The value for money component is important and now extras like additional space, extra parking, and an ocean view don't require as much as they used to.
Lease rentals can be negotiated over not only rental amounts but also length of lease and regular rent rises.
Landlords are now offering greater incentives and sops to their prospective tenants.
6 cheque contracts are being offered as well as a rent free period for days lost during the moving process.
Real estate agencies too are there working side by side with the potential client, ensuring that the hardest bargains are being driven for the best locations while leasing property in Dubai.
Sometimes a comprehensive package is offered to the lessee including insurance, valuation and even finances options.
An experienced and skilled real estate agency guides the prospective lessee through the entire process right from showing him properties to suit his budget and requirement, to short listing them till the terms of negotiation with the landlord.
They are well versed in all the requisite permits and legalities involved and ensure that the best possible home or office is got at the least price and most attractive terms.