Etihad Towers, the five-tower complex opening on the waterfront, is adding a new twist to the rivalry for residential tenants.
Location, location, location:
Industry Insights What's hot and what's not in the world of property. Learn More
Renters who agree to leases of two to three years will receive discounts on their rent of up to 10 per cent. Not long ago any sort of deal or competitive offer from a landlord in the capital was rare, let alone from a new project in a prime waterfront location targeting high-end renters.
"They've taken a sensible approach in this market," said Paul Maisfield, the general manager of Asteco, a property firm. "Other major landlords will take note."
The deals in Etihad Towers vary. But leases for two-bedroom apartments in Tower 5, which is scheduled to open within a few weeks, are Dh154,000 (US$41,927) to Dh164,000 a year, depending on the size and floor of the apartment
The range is lowered to Dh144,000 to Dh152,000 if a tenant agrees to a two-year lease, and Dh140,000 to Dh150,000 for three years, agents say.
Some are sceptical about whether the offer is a good deal for tenants. Rents might drop more than 10 per cent in the next year. And there is a penalty if a tenant leaves before the end of the lease period.
"Nobody wants to commit" in this market, said Paul Preston, the managing director of Elysian Properties.
Response to the residential leasing in the towers has been "very strong", said an Etihad Towers spokesman.