One-Cheque Contracts Have Clearly Increased As Landlords Demand Full Payment Upfront.
In Dubai, landlords are much more likely to want a single cheque payment. Especially those who are renting out in freehold regions where demand continues to outpace supply in most places. Additionally, it indicates a considerable decline in the number of landlords. Who were once prepared to accept several cheque payments, sometimes even up to 12 cheques.
The number of tenants paying with one cheque increased by 6% in 2022. While the number of tenants paying with four cheques decreased by 4%, according to Betterhomes. Multiple check payments decreased, but somewhat. (During the height of Covid, a number of landlords permitted tenants to make payments by direct debit. From their credit cards in order to help them fulfill their commitments.)
Other real estate firms make the same complaint. Which claim that landlords frequently request and receive single cheque in addition to lease agreements. According to a real estate agent, “We are seeing a lot of that occur, especially whenever the tenant is a newcomer to Dubai.” Landlords, prefer to receive all of their payments up front, and in a sense, they are fully utilizing the demand.
However, if tenants discover they must pay the entirety of their yearly rent at once, they will be at a disadvantage. While those whose employers handle the payment can do so, it can be quite taxing for everyone else.
The Advantage Is Decisive With Landlords
Due to rent rises of 20% or more in popular areas throughout 2022, landlords found themselves in a strong position. Even in those areas where new homes were distributed in large numbers, the majority of those were pre-let at rents that were higher than average.
According to Waind, rentals increased by an average of 36% last year. “Villa rents rose at the fastest rate because of the acute lack of supply, which is particularly true for villas. It should be kept in mind that while pre- and post-pandemic rentals were comparatively modest. They have been growing quickly afterward. Rents generally remain below previous peaks.
A Further Year of Increases
According to industry sources, rent rises would likely be higher overall in 2023, with new locales likely to catch up with rent hikes with their own 15–25 percent increases. Additionally, it will be at least another two years before the majority of today’s off-plan projects are completed and handed over.
More real estate companies claim that by November, there were fewer rental ads appearing in Dubai, which slightly increased the pressure already being put on rentals. According to data from Betterhomes, the company processed 24 percent fewer listings in 2021 than it did the previous year.
How Do The Rents Seem To Be?
An annual lease for a two-bedroom apartment in Business Bay would cost an average of Dh105,526, an increase of 22% from the previous year. When you travel locally to Downtown Dubai, that costs, on average, Dh125,814. In 2021, that will be 21 percent higher.
A JLT location would continue to provide two-bedroom units for less than Dh100000, for Dh91948 on average, an increase of 22%. Rent at Dubai Creek Harbour has increased significantly, to Dh104,808. Only the rate of year-over-year gains may decrease for 2023. But not by much…