It is not a secret now the pandemic has covered all countries around the world and has had a great impact on the global economy. Thus, it is only a question of the degree to which each exact country and each exact market were affected. Moreover, it is a question of how long they will recover and, in particular, what the next year may look like.
In this post, we will review rental changes in Dubai rental market that have happened during the pandemic:
- Rental price trends;
- Changes in rent payment conditions,
- New practices regarding early lease termination.
The year 2020 is unique not only by its pretty number sequence. It’s made history as the fiercest pandemic of the century, the Covid-19 pandemic. This pandemic affected every side of our life with rental business and tenancy relationships as no exception.
Typically, during such a difficult time, the tenant became the most vulnerable part of these relationships. Fortunately, the Government of Dubai wisely took urgent measures to protect tenants and help them survive the pandemic times. This starts from rent reduction and penalty waivers and goes to a moratorium on eviction and regulation house shifts during a lockdown.
Just as every game should have its rules, every activity that involves certain contract relationships should have clearly defined laws. These laws regulate and govern the most common aspects regarding what each of the parties shall (or shall not) or is allowed (or not allowed) to do. In other words, these laws define parties’ rights and obligations.
And the rental business in Dubai is no exception.
Let’s start with some statistics.
The population in Dubai is around 3.48 million people. And 80 percent of them live in rented apartments or villas. In other words, a demand for rental properties in Dubai is really high.
In seven cases out of ten, when one purchases a property, one invests in this property. In other words, this one intends to rent it out and enjoy passive income.
Thus, understanding the essence of rent agreement and its content as well as knowing who can help you with it is a must.
The legal validity of a rent agreement (a tenancy contract) stands for its legitimacy and binding of its provisions for all its parties during the whole contract period or until certain circumstances occur. In other words, this means each of the parties has certain obligations to another party but also has the right to claim that party to fulfill their responsibilities and liabilities as well.
So, let’s discuss the peculiarities of tenancy contract legal validity in Dubai.