Landlords in Dubai are being forced to offer potential tenants incentive packages due to a decline in demand for property. These incentive packages are needed to stimulate the rental business, which according to local real estate agents is stagnant.
Incentives being offered include a three-year freeze on rent increases as well as other more traditional incentives such as a free month’s rent, free water and electricity during the first month and an increased number of pay installments for the property. More innovative new incentives include free Internet services for tenants as well as free access to the swimming pool, gym and to any other facilities that might be available.
Due to the decline in demand, landlords in the emirate have been forced to come up with brand-new incentives that haven’t been offered in the rental sector before, such as the agreement not to increase rents for three years. This agreement does not break rules set by the Dubai Land and Property Department. Landlords are anxious to attract new tenants or are looking towards keeping old tenants to help maintain their businesses after this particular real estate sector was affected by an increase in supply.
According to the article in emirates 247.com, the real estate market in Dubai is currently going through a correction period which in turn has led to landlords being forced to offer a whole range of new incentives. Real estate experts don’t think there is any harm being done when landlords have to offer these types of offers and points out that many real estate rental firms are offering these types of deals to the existing clients’ more than for potential new tenants. They point out this is a very successful marketing technique, particularly when there is a long relationship between the landlord and the tenant. Incentives being offered for current tenants include better maintenance services and the opportunity to increase rents installments to six, or to eight from four.
It’s hoped that these incentives being offered by landlords will bring a fresh momentum to the rental market, increasing occupancy rates.