Market changes mean many Dubai landlords now offering monthly payment
As rent continues to drop in Dubai, some landlords are now accepting monthly rent cheques.
According to a statement given to Arabian Business by Lynnette Abad of Cavendish Maxwell, landlords in areas like Jumeriah Village Circle, International City and Dubailand are now offering their tenants the option of monthly payments.
“We expect to see this type of behaviour increase and continue throughout the year as landlords will offer rent-free months, zero commissions and free air conditioning,” added Abad who is the partner and head of Cavendish Maxwell’s Property Monitor.
According to the consultancy company’s Property Monitor database, more and more tenants are opting for contracts that offer multiple payment plans.
In fact, the rate of tenants opting for single cheque payments has decreased by almost 20 percent – last year, 55 percent paid with one cheque while only 33 percent opted to do so this year.
That said, it seems as though two cheques is the preferred payment plan for tenants living in Dubai Marina, Motor City, IMPZ and Downtown Dubai – 29 percent opted to do so, which is an 11 percent increase from last year.
The database also found that tenants living in DIFC, Dubai Sports City and Al Barsha are leaning towards a four cheque payment plan – the rate increased to 22 percent from 14 percent in the past year.
That’s not the only good news for those looking to rent in Dubai.
According to a recent report published by Bayut.com, the average rental rate has dropped by 10.4 percent with sale prices decreasing by as much as seven percent.
Speaking on the drop, the CEO of Bayut.com Haider Ali Khan said: “Over the past years, the market has gradually matured, and as this progression has taken place, investors need more credible information regarding the housing market, and we are working diligently in doing our part by presenting the information.”
Bayut.com’s findings coincides with Propertyfinder’s latest report.
The property website found that the rental value of property in both Dubai and Abu Dhabi have experienced a notable drop with Downtown Dubai experiencing the biggest decline at 6.7 percent.