Single-cheque tenants bag big discounts

It might seem to be the right time to rent an apartment in Discovery Gardens since a number property leasing companies have unleashed lucrative offers. But there is a catch. You get the best offer only if you pay the yearly rent in a single cheque.

Real estate experts believe similar offers are likely to be launched in various other communities across Dubai, especially Dubailand, Marina, Jumeirah Lake Towers, Sports City and Motor City. Jones Lang LaSalle expects 20,000 new units to be delivered by year end and the bulk is expected to be released in these areas. 

Nakheel, the master developer of the project, is currently renting out studios, starting Dh25,650 with first two months free, while Better Homes, a real estate consultancy, is offering studios for Dh23,000 with one month free. The best offers are available only if you pay the full rent in a single cheque.

According to Nakheel call centre, rent for a studio if paid in one cheque is Dh25,650, two cheques is Dh26,350, four cheques is Dh27,100 and six cheques is Dh28,500. A one-bed apartment is being rented for Dh34,200 (one cheque), Dh35150 (two cheques), Dh36100 (four cheques) and Dh38,000 (six cheque).

Nakheel will be charging a refundable deposit of Dh3000 and five per cent of the annual rent as leasing fee.

Better Homes’ offer brochure states that studios are available for Dh23,000 if a tenant agrees to pay in one cheque, Dh24,000 in two cheques, Dh25,000 in four cheques, Dh26,000 in six cheque and Dh28,000 in 12 cheques. A one bed is being rented out for Dh31000 in one cheque, Dh32000 (two cheques), Dh33,000 (four cheques), Dh35,000 (six cheques) and Dh37000 (12 cheques).

The refundable deposit is 5 per cent of the annual rent, while agency commission is 5 per cent of the yearly rent.

In both the cases, the tenant has to pay 5 per cent of the year’s rent as housing fee to Dubai Municipality.

Cluttons said in a recent report that apartment rents in the lower end of the market (affordable communities) fell eight to 10 per cent in the first quarter compared to the last quarter of 2010.

“Rents continued to feel the pressure as tenants took advantage of the over supplied marketplace with average rents falling between eight and 10 per cent compared to the last quarter,” it added.

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