Last Updated on: 2nd July 2023, 06:51 pm
Renters in Dubai Are Struggling As Landlords Demand Full Annual Rent Upfront
Increasingly, landlords in Dubai are demanding full annual rental payments upfront, particularly in condominium areas where rental demand exceeds availability. This trend has resulted in fewer homeowners being willing to offer multiple check payments, in some cases as many as 12 checks.
Freehold areas in Dubai are places where individuals or companies can own property, as opposed to freehold areas where ownership is limited to a specific period of time.
According to Richard Waind, Group CEO of real estate services company Betterhomes, in 2022 there was a 6% increase in 1-check renters and a 4% decrease in 4-check payments. This shift towards single check payments is primarily due to landlords benefiting from strong demand for rental properties.
Other real estate companies have also reported that landlords are increasingly demanding one-time check payments alongside leases. This can be particularly difficult for renters who are new to Dubai and may not be able to pay the full annual rent upfront.
Throughout 2022, owners have maintained a strong position in the rental market, with rent increases starting at 20% or more in popular locations. Even in places where new homes have been delivered in large numbers, most of these properties have been pre-let (renting a property ahead of the completion date) at above-average rents.
Richard also said rents went up 36% last year. He added that the shortage, particularly of villas, is severe in Dubai, leading to the fastest rise in villa rents.
Also Read: Real Estate Prices in Dubai Will Break All Previous Records This Year