Rental Relief Package by ENBD: A Ray of Hope for Tenants2 MIN READ
A well-appreciated step taken by the ENBD REIT amid the economic-slowdown in the emirates due to Covid-19 is the introduction of rental relief. Recently, ENBD REIT announced a rental relief package for the tenants that are severely affected by Covid-19 economic decline. ENBD is planning to initiate rent relief across its properties, which will help in reducing the financial burden of the tenants.
ENBD is planning to introduce rent free periods during which you can postpone or reschedule the payments of rents. They will give this rent relief as per the financial status of the tenant and it will vary from tenant-to-tenant.
According to Anthony Taylor head of real-estate at Emirates NBD Asset-Management, ENBD is currently identifying those who’re in dire need. Even though ENBD REIT is in a good and healthy financial position with positive income and sufficient cash-flow to meet its needs at the moment. The organization cannot provide rental relief to all its occupants. However, if the company plans to provide relief to all, the rents will go down by a small percentage. This relief in rental payments during lockdown will be insignificant to those who are facing financial challenges. Therefore, the REIT is accessing the financial positions of each tenant and providing them relief as per their financial standings.
In order to avail rental relief by ENDB REIT, the tenants need to submit documents required for their financial evaluation. The documents for commercial tenants include trading figures for the last 12-months, audited financial information, evidence of ongoing permanent costs, etc. The documents required for residential tenants include a document showing loss of income such as salary reduction or termination letter. Moreover, tenants will also need a bank statement for the past 12 months.
Dubai’s real estate market experienced slow-down ever since the oil prices started dropping in 2014. And with the current ongoing concerns regarding the oversupply of properties and coronavirus pandemic, the difficulties of the sector have increased. The property for rent in Dubai, both commercial and residential are also suffering as the tenants struggle to pay rents. However, with the reopening of economic and commercial activities, the situation is expected to get better soon. Dubai’s government has already provided incentives and relief in several industries to help them survive the Covid-19 crisis. Further relief in rental payments will encourage current and future occupants to sustain longer lease agreements on medium-or long-term basis.
As per expectations, Dubai’s real estate market is going to bounce back in 2021 as a result of the Expo-2020. The economic activities taking place due to the upcoming mega event will definitely help the real estate sector in growing. According to experts, the delay in the launching of new properties this year is due to the wake of global-pandemic. In the upcoming year, these properties will surely make Dubai the commercial and trading hub of the Middle East.
As per the views of Mr. Sajwani of Damac, 2021 is going to be a positive year for Dubai’s real estate industry. The one-year delay in Expo 2020 is a good step that the government took to overcome the economic challenges created by the ongoing Covid-19 pandemic.