The playing field seems to be levelling this year with many of our existing tenants and propsective tenants all keen to let us know that their companies have reduced their allowances. Those of you who have not experienced expat living will no doubt be thinking that we should be paying our rent from our salaries and should stop whinging and get on with it. Well, a pint over here is 6 quid and any help you can get is gratefully received. Although I dont get an allowance from my miserly business partner I do sympathise, even if it is through gritted teeth, as this is impacting on the market.
A good rent allowance would be in the region of 200 - 300 k AED . Fallen off your chair yet? If you are a landlord I suggest you keep quiet as this is paying off your mortgage and generous expat packages have kept the property market bouyant for many years.
Unfortunately many tenants are claiming that reductions in their allowance is in the region of 25% and this is going to have a negative impact on the rent received over the coming months.This will be compounded by the fact that Tiara is about to be handed over and Marina Residence is not far behind.
Companies are definitely hurting at the moment and the champagne expat lifestyle is currently under threat. With reduced rental allowancea comes reduced bonuses and I see the next twelve months being one of attrition.
My advice is pay your rent as you need a roof over your head, stick to beer ( at 6 quid ) as opposed to the bubbly, and suck up to the human resources manager. People are seeing better rental prices on the Palm and many tenants are starting to consider the Palm as an option. The Palm will attract enough tenants to fill the spaces but there will be a lag and in this period where we will see lower pricing. Rents will come back but don't expect too much in the next 12 months.
My 'green eyed monster' has been tamed for a while but I am sure a year on and expats will be smiling once again as allowances are increased and corks start popping.
