10 09 2020

Dubai developers began to offer free housing for tenants

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Dubai developers, in order to increase the flow of buyers, decided to give "free" periods of stay. This clause is added to the contract for the lease of a property in already implemented projects.

So, what is included in this “gift” period? Often, this is one or two months, which come in the form of a bonus when concluding a contract for an annual lease. It is worth noting that this move is very popular for people who want to save money on rental housing in the UAE.

Who is covered by the special conditions? First of all, only for ready-made projects that are leased directly by developers. Also, under the special terms and conditions fall for leased objects with subsequent purchase option. People only start paying rent after the “free” period.

This scheme was first used for office and retail tenants. Today we are witnessing an increase in popularity in the field of residential real estate. The rapid growth in popularity was recorded after the completion of new projects.

In connection with the outbreak of coronavirus and the application of tough measures to reduce the incidence of the population, a decrease in the number of transactions with residential real estate was observed in the first 6 months of 2020. The decline occurred by 20% if comparing the same period in 2019. This trend was noticed by the consulting company CBRE, which conducted the analysis.

When the authorities removed the main restrictions, the real estate market revived and went up. Developers contributed to the growth of sales by offering the population new payment schemes, various discounts and bonuses, as well as grace periods.

According to the forecasts provided by CBRE, 35,000 housing units will be commissioned in Dubai by the end of 2020, but actual data indicate 20,000 facilities that will be ready for use.