The Dubai developer, Nakheel is restructuring $10.8 billion in debt; is now offering up to two months rent free in units in lower priced developments in a bid to attract tenants. The government owned company, is offering free periods on leases in Discovery Garden and International City, to new tenants.
The increasing vacancy levels are likely to force more landlords to offer incentives such as rent free periods, and reduce rates in a bid to attract more tenants in an oversupplied market.
James Gauduchon, head of marketing at real estate agency Better Homes said, ?There is no doubt that Dubai?s residential leasing market is becoming? more competitive. Not only have prices dropped drastically over the past two years, there is the often mentioned slight oversupply in many areas leaving landlords with under occupied buildings.?
Nakheel, which overstretched itself building islands in the shape of palms and other ambitious projects, had said in April, that the company would no longer be selling real estate units in Dubai.
A spokesperson from Nakheel has confirmed that the offer and that is being well received by the public.