All the residents of the Emirate are looking towards their landlords as the effects of the pandemic render everyone struggling. The need for a revised tenancy agreement is making some landlords anxious while some are willing to renegotiate with tenants. Examples of both scenarios are playing simultaneously across the emirate as people try to register different cases. The government had ceased to entertain all rental dispute cases and advised people to settle their matters. Furthermore, no eviction is to happen in the Emirate by the decree of Sheikh Mohammad Bin Rashid Al Maktoum, the ruler of Dubai. Today, people are trying to learn more about UAE labor law and get in touch with real estate consultants. It seems there are a lot of worries even with the government’s friendly policies that are increasing tension amongst residents.
The Demise of March:
The economic and developmental progress of the markets seemed favorable in the first two months of 2020. The residential and commercial markets both showed a lot of promise to investors and stakeholders. The number of apartments, flats, and residential units in the real estate inventory was increasing to meet rising demands. Furthermore, the anticipation of the Expo 2020 further raised a lot of interest in the market as the event neared. However, since the starting of March, with everything working under curfew regulations and restrictions, things haven’t exactly been stable.
Businesses not only reported losses but also hinted at massive downsizing resulting in increasing unemployment. Although the corporations and organizations tried getting through with pre-emptive measures like cutting down salaries. However, that didn’t seem to be enough to sustain the businesses.
Struggle to Help:
Keeping in view the worries of tenants and associated partners, companies like Dubai Holdings, Aldar, and Meraas announced stimulus packages. These economic relief packages managed to help a specific set of tenants associated with the corporations. The rest of the emirate’s residential market will reveal the real situation as foreign workers decide whether they stay or leave.
Furthermore, the following banks managed to provide relief packages to individuals, small-scale and large-scale organizations, businesses, and corporations as well:
- Emirates National Bank of Dubai (Emirates NBD)
- Dubai Islamic Bank
- Emirates Islamic Bank
- Mashreq Bank
- Commercial Bank of Dubai
Will the Landlords Compromise?
Even though there are little hopes of things becoming instantly better, people are still deciding not to leave. According to experts, people are not going to waste any more money on shifting and relocating. Instead, they reckon, people will try to work out a settlement with their landlords. Even now, many are trying to get their property owners to understand the dire situation they’re in. The government and even the DLD have recommended that people try to work things out in a respectable manner.
Journalists from Gulf News interviewed landlords from various areas of Dubai who owned multiple residential units. Apparently, landlords can’t wait for the next cheques to cash them. Even though there are some who are willing to delay the payments or have monthly installments. Then there are those who are accepting rental payments by direct debit as well. Landlords argue that they have their own payments and commitments with banks to honor. The situation is getting grave for them as well since they also can’t rely on other sources of income either.
Dubai Labor Law to the Rescue for Some:
Foreign workers employed in Dubai are seeking help from their organizations that are obligated to help them. According to the Ministerial Resolution 279, employers have the responsibility to take care of the residential accommodation allowance. The legal Industry goes on to further specify that even in situations when employee salary and benefits are cut down; employers are required to oversee their accommodation expenditure for the duration that the employee stays in Dubai.
Lawyers in Dubai are siding with landlords and tenants alike as they face troubles in different situations. Although there are no rental disputes nor eviction cases being entertained, people still seek advice for times to come.