Dubai, UAE, May 21, 2020
Real estate expert Walid Al-Zarouni identified six benefits the UAE real estate sector can get from (# LNDLORDS OF BENOVELENCE) initiative, which aims to support tenants through rent waivers and exemptions , and help them overcome these emergency situations of the outbreak of Covid-19 .
The (# LNDLORDS OF BENOVELENCE) initiative, proposed by Al-Zarouni last week and got wide- spread response among the local real estate sector , called on supporting tenants directly by exempting them from rents for a period of no less than 3 months ,extensible, with the aim of mitigating the bad effects of the current conditions on different segments of society. The initiative encourages real estate owners to take a humane approach to tenants during the crisis.
Al-Zarouni, who heads W Capital Real Estate Broker, one of the leading real estate brokerage companies in the UAE, said that the first benefit of adopting such national initiatives is that they contribute to reducing economic and social repercussions of covid-19 on individuals and investors alike. This will also grease the wheels of the national economy to deal with the current challenges.
The second benefit is that the initiative provides a rare opportunity to real estate owners to preserve their properties from sudden tremors, as well as their occupancy rates, which contributes to achieving stability in this important sector in general. Al Zarouni emphasized the fact that the tenants shift from occupied units, especially commercial, will cost the owner double the amounts of exemptions proposed for the initiative, which is the rent for three months. In the case of evacuation of some real estate units, whether residential or commercial, due to the landlord’s adherence to the rent, sever pressure will be exerted on the landlord from other tenants, as they are expected to resort to the threat of eviction and search for better housing opportunities.
Al Zarouni stressed the fact that the UAE real estate sector is robust and able to overcome this crisis, supported by the precautionary measures taken by the government, boosted by a set of rules and regulations as well as legislations that abide to international standards ,and are tailored specially for a sector that performed well until now . He noted that the sector managed to overcome many global and regional crises, emerging stronger than before every time.
Al-Zarouni pointed out that the third benefit is to enhance confidence between investors and owners, and increase tenants’ satisfaction and loyalty in a manner that supports the goals of the national economy and common interests, as well as dividing the burdens of Covid-19 repercussions in a fair manner .That may include adopting measures to support tenants and enhance the long-term strategic partnership being nurtured over the past years.
The fourth benefit is that the initiative reflects the extent of social responsibility in a way that enhances the competitiveness of society and the entire country in supporting the national economy and investors. It also contributes to mitigating the effects of emergency conditions on different segments of the society, while embodying the spirit and values of human and economic solidarity and compassion among the various society segments , where everyone is doing his best to alleviate the suffering of those who are unable, especially as the initiative coincides with the month of Ramadan.
The (# LNDLORDS OF BENOVELENCE) initiative fifth benefit in Al-Zarouni’s view is that the contributions of owners, developers and other parties will add to the formal governmental efforts during these difficult times, and deliver a clear message of gratitude and loyalty to the country that has provided so much for businessmen and companies throughout the past decades. The UAE provided many facilities that helped in achieving good gains and creating economic entities with excellent financial positions, in light of the continuous government support.
The sixth benefit of the initiative is that it resonates with the directions of the wise leadership to enhance social cohesion, and strengthen ties and relations between all society members . That will also enhance the UAE efforts and initiatives to face the challenges exerted by Covid-19.
Al-Zarouni appreciated the private initiatives taken by some self-motivated real estate owners related to providing facilities and exempting tenants from paying the rent premiums for several months, hoping that these initiatives would expand to include a larger number of owners, taking in to consideration everyone’s capacity and available tools.
