Leases that permit multiple payments and discounted rents are becoming more common in the Abu Dhabi property market.
Leases that permit multiple payments and discounted rents are becoming more common in the Abu Dhabi property market.

Capital now a tenants' market



Times have changed for Abu Dhabi apartment hunters, with landlords offering deals that were unheard of a few years ago.

While not as dramatic as the situation in Dubai, where monthly rent payments and steep discounts are rapidly becoming the norm, the capital's rental market is slowly loosening up, industry executives say.

"Landlords are absolutely starting to negotiate," said Linda Loughnane, the managing director of LLJ Property, an Abu Dhabi property firm. "The realisation is the market is making these demands and there are multiple options" for renters, she said.

Leases that permit multiple payments - rather than a full year's rent being required up front - and discounted rents are becoming more common, observers say, while existing tenants are often offered substantial discounts to stay.

In the past, agents demanded viewing charges, usually Dh100 to show prospective tenants an apartment, and would not accept multiple, dated cheques to cover rent, said Abdul Salam April, a restaurant manager who arranges accommodation for his staff.

Last month, when he was searching for an apartment, there were no viewing charges and he signed a deal to use three cheques to pay the rent.

Landlords' willingness to accept more than one cheque, the traditional standard for the market, may be the most significant change.

In the past year the Dubizzle website has attracted a growing number of Abu Dhabi advertisements offering "flexible payments," said Hassan al Shouli, Dubizzle's marketing manager. Abu Dhabi rental listingshave doubled in the past two months, he said. He added that a few have even advertised a willingness to accept monthly payments.

"It is much more common to have two cheques [in Abu Dhabi], while before it was dead out of the question," said Peter Samaha, a partner in Quest Property Services in Abu Dhabi. "Now it's perfectly reasonable for people to ask for that."

However, deals vary depending on the type of buildings, industry executives say. In older buildings prices might have come down 25 to 30 per cent in the past year, but many of the owners of newer buildings are still reluctant to negotiate.

"There is a big difference in quality," Mr Samaha said. Norman Yap said he found landlordswere "more aggressive" when he started searching for an apartment last month. The interior contractor ultimately rented a one-bedroom apartment on Muroor Road for an annual rate of Dh60,000 (US$16,335).

"Prices were reduced quite a lot," he said.

Mr Yap's landlord offered to allow him to pay with two cheques for the year but ultimately reduced the price by Dh5,000 in exchange for Mr Yap paying the full year's rent in one sum. Rents in Abu Dhabi have been declining for the past year.

In the third quarter of last year, rates fell 5 per cent overall but declined 16 per cent in the Corniche area, compared with the same period a year earlier, according to Landmark Advisory, a research firm. A wave of new apartments coming on to the market, including more than 4,500 units due to be available on Reem Island in the capital in the first half of this year, will drive prices down further, Landmark predicted in a recent report.

"These new developments will upset the market, leading to a complete recalibration of rents around the new developments, which often offer better amenities and facilities," Landmark said.

When Frank Kettner, an electrical engineer, started searching for an apartment two weeks ago, he found the market in Abu Dhabi had changed considerably from the past time he was in the city two years ago.

"It's easier," he said. "There are a lot of flats on the market."

Mr Kettner said he was offered discounts ranging from Dh5,000 to Dh10,000 before he settled on paying Dh100,000 for a two-bedroom apartment in Al Reef.

Some renters, however, are still finding it a tough market. George Marino, from Zurich, said he was surprised by the high prices when looking for an apartment in Al Bandar, a new development.

Landlords were "sitting on prices", he said. "They're very rigid, especially [the landlords] who bought at the high end." He eventually agreed to pay an annual Dh120,000 for a two-bedroom apartment looking on to a construction site.

"Given the upcoming supply increase, [the rent] is far too high," Mr Marino said.

From Zero

Artist: Linkin Park

Label: Warner Records

Number of tracks: 11

Rating: 4/5

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ETFs explained

Exhchange traded funds are bought and sold like shares, but operate as index-tracking funds, passively following their chosen indices, such as the S&P 500, FTSE 100 and the FTSE All World, plus a vast range of smaller exchanges and commodities, such as gold, silver, copper sugar, coffee and oil.

ETFs have zero upfront fees and annual charges as low as 0.07 per cent a year, which means you get to keep more of your returns, as actively managed funds can charge as much as 1.5 per cent a year.

There are thousands to choose from, with the five biggest providers BlackRock’s iShares range, Vanguard, State Street Global Advisors SPDR ETFs, Deutsche Bank AWM X-trackers and Invesco PowerShares.

GRAN%20TURISMO
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COMPANY%20PROFILE
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If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.

When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.

How to get there: Emirates currently flies from Dubai to Orlando five times a week.
Disclaimer

Director: Alfonso Cuaron 

Stars: Cate Blanchett, Kevin Kline, Lesley Manville 

Rating: 4/5

Wicked
Director: Jon M Chu
Stars: Cynthia Erivo, Ariana Grande, Jonathan Bailey
Rating: 4/5
'The Ice Road'

Director: Jonathan Hensleigh
Stars: Liam Neeson, Amber Midthunder, Laurence Fishburne

2/5

Guns N’ Roses’s last gig before Abu Dhabi was in Hong Kong on November 21. We were there – and here’s what they played, and in what order. You were warned.

  • It’s So Easy
  • Mr Brownstone
  • Chinese Democracy
  • Welcome to the Jungle
  • Double Talkin’ Jive
  • Better
  • Estranged
  • Live and Let Die (Wings cover)
  • Slither (Velvet Revolver cover)
  • Rocket Queen
  • You Could Be Mine
  • Shadow of Your Love
  • Attitude (Misfits cover)
  • Civil War
  • Coma
  • Love Theme from The Godfather (movie cover)
  • Sweet Child O’ Mine
  • Wichita Lineman (Jimmy Webb cover)
  • Wish You Were Here (instrumental Pink Floyd cover)
  • November Rain
  • Black Hole Sun (Soundgarden cover)
  • Knockin’ on Heaven’s Door (Bob Dylan cover)
  • Nightrain

Encore:

  • Patience
  • Don’t Cry
  • The Seeker (The Who cover)
  • Paradise City
COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
India Test squad

Virat Kohli (c), Mayank Agarwal, Rohit Sharma, Cheteshwar Pujara, Ajinkya Rahane, Hanuma Vihari, Rishabh Pant (wk), Wriddhiman Saha (wk), Ravichandran Ashwin, Ravindra Jadeja, Kuldeep Yadav, Mohammed Shami, Umesh Yadav, Ishant Sharma, Shubman Gill


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