By Sarah Townsend
Report claims more than a third of tenants are paying rent in four cheques
Landlords in Dubai are becoming increasingly accepting of rent paid in multiple cheques, new research suggests.
More than a third (33 percent) of tenants who found properties through Dubai-based broker Allsopp & Allsopp in May are covering rental leases in four cheques, the agency has claimed.
While almost a third (32 percent) of Allsop & Allsop’s tenants as of May were still paying in one cheque, this represents a noticeable drop since May 2016, when almost half (42 percent) of tenants were paying rental fees in a single cheque – the traditional requirement for Dubai’s rental market.
The analysis reveals greater market flexibility at a time when residential rents are continuing to fall in many locations across Dubai, the agency said.
Lewis Allsopp, CEO of Allsopp & Allsopp, says: “It is good to see a shift in owner's mentality. A sign of a mature property market is to offer more flexible payment terms…and accept a spread in annual payments.”
The firm also said that a huge proportion – 72 percent, or almost three-quarters – of residential sales agreed between April and May 2017 were for vacant properties, and that 55 percent of buyers used mortgage finance.
Allsopp said: “At present, the market is dominated by end users. Savvy sellers ensure their properties are vacant and ready for eager buyers to take ownership immediately. It’s to a seller’s advantage to have their property vacant for transfer.”
Almost a third of those signing rental leases in May 2017 were UK nationals, the firm added.
Still no sign of the monthly standing order as used by every other developed country in the world though....