Landlords in Dubai have begun offering rent-free periods to tenants in a bid to keep units occupied.
Gulf News reports that despite experts saying the Dubai housing market is showing signs of recovery, landlords are going to greater lengths to entice renters. Many landlords are offering rent-free periods, reducing rent for current tenants and allowing renters to pay in multiple installments (instead of an entire year up front).
A sample listing reads: “Brand new, one-month free [rent], with appliances."
While construction moves forward on new apartment buildings in Dubai, few jobs have been created. This means that more apartments are available with fewer people willing or able to pay for them.
This puts tenants in a stronger negotiating position, according to Property Finder [PDF].
"New tenants and their brokers have been able to negotiate concessions that were previously dismissed or largely unheard of in the Dubai market, such as rent-free periods," a report from the property website says.
The strain has hit other emirates as well. According to the Khaleej Times, landlords in Sharjah have been feeling the pressure to find new tenants and hold onto current renters.
Renters in Sharjah have found themselves able to move into larger flats without increasing their rent bill, while others have found it affordable enough to move into Dubai.
But the decline in Sharjah is still less than last year. Rents in the emirate dropped by seven percent in the first half of 2017 after just over an eight percent decline in 2016.
