The demand of Dubai property is still weak despite various actions taken by the government to fix oversupply issue. Landlords who have been seeing their properties vacant for years are now taking actions on their own to increase the vacancy rate in Dubai. In order to lure tenants for long term leases and uplift the demand of their rental properties, they are providing various types of incentives to the tenants.
Incentives are being offered so that the demand of Dubai real estate may rise and match with the supply to bring stability in prices. The landlords believe once these incentives would push the price of their property up, they would be in a position to earn constant stream of income in the form of rents.
Various landlords are providing incentives to the tenants based on the space they lease, type of the tenants they are and the area where the property is located. Some of the freebies or incentives which landlords are currently offering to the tenants are described below. These incentives have made Dubai property market quite friendly for the tenants.
Low Rental Rates!
A large number of landlords are renting out their properties at quite lower rates, since they believe something is better than nothing. Moreover, they are offering better facilities in the properties than before like additional parking spaces, lawns, better interiors and improved swimming pools. 10% discounts are common, if tenants sign long term leases.
Rent - free Periods!
Almost all the landlords are offering free rent periods to the tenants. Some are offering rent free periods at the time of renewal of lease, since cost of moving can be high for the tenants. For lease of up to one year, 2 months rent free period is common where as in case of renting out an office for five years, two years rent free period is common.
Some developers are also offering free furniture vouchers to the property owners and in order force the tenants to live on rents, landlords are offering furnished properties at lower rates. The furnished properties include almost all the facilities and amentias needed in a home.
Multiple Cheque Payments!
Almost all the landlords are offering easy rental payment options as the most attractive feature of living on rent in Dubai. One cheque payment has almost demised and 2, 4 and 6 cheque payments are mostly common. Some landlords are even accepting monthly rental payments.
No Security & Advance Fee!
Many tenants have waived the requirement of security fee which was initially 5% in Dubai. Moreover, no advance payments are being taken, since landlords are looking forward to enjoying long term benefits while neglecting short term temporary financial gains.