By Parag Deulgaonkar
Two- to four-cheque payment plans remain more common, says Cavendish Maxwell
Landlords in Dubai have started accepting annual housing rents in six to 12 cheques, as new supply enters the market, according to a real estate consultancy.
Data shared exclusively by Cavendish Maxwell with Arabian Business shows tenants are moving away from paying rents in single cheque with two and four cheques payment plans gaining ground.
As per the consultancy’s Property Monitor database, 33 percent of rental contracts in May 2017 were negotiated with one cheque compared to 55 percent a year ago. Twenty-nine percent of the contracts were done with two cheques compared to 18 percent, while four cheque payment plans rose to 22 percent from 14 percent.
“We are also seeing an upswing in contracts with six and 12 cheques, particularly in Dubailand, International City and Jumeirah Village Circle,” said Lynnette Abad, partner and head of Property Monitor, Cavendish Maxwell.
“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,” she said.
Tenants were offered one- to two-cheque payment plans mostly in Burj Khalifa district, Dubai Marina, Dubai Sports City, Emirates Living, Palm Jumeirah and MotorCity, while the four cheque payment option was given in Al Barsha, Dubai International Financial Centre and Al Reem and Arabian Ranches.
This week, Asteco said that the emirate is expected to receive 17,700 new units this year compared to 8,750 unit in 2016, with a number of these units to be offered on “discounted rates to encourage take-up”.