High occupancy levels in the UAE need good property management, according to real estate consultants

A short term view will lead to falling standards and loss of income and it is cheaper to maintain a building well than make repairs in the future, according to a report from Cluttons Middle East.
 
Cluttons, the real estate specialist that has enjoyed a dedicated Middle Eastern presence since 1976 and with the largest footprint in the region, urges property owners to invest in professional property management services in the soft market.
 
In a downward cycle of rental income the temptation for landlords is to reduce costs in order to maintain their income. However, this short term view will lead to falling standards in the property ultimately resulting in vacancies and additional loss of income, it says.  
 
Cluttons enjoys a strong relationship with the Royal Institution of Chartered Surveyors, offering a wide range of property services, from property management, agency and strategic consultancy services across the commercial and residential sectors.  
 
Its property management arm is one of the leading practices in the UAE, with offices in Dubai, Sharjah and Abu Dhabi. Properties under Cluttons management are reporting high occupancy levels, with 100% occupancy in buildings such as the Bahwan Towers and Mankool Tower, Dubai and East Tower in Sharjah.
 
‘The Cluttons team is committed to helping property owners maximise rental yield. Owners can actively affect the value of their buildings through their decision on design, management and most importantly levels of maintenance and customer service. Effective management is key. We are noticing many to let signs creeping up on previously full buildings where corners are being cut,’ said Lesley Preston, director of Cluttons in the Middle East.
 
‘The build it and they will come approach will not work in this market. Tenants have a choice of properties and professionally managed buildings will secure and retain tenants – enhancing the value of the building. It is cheaper to maintain a building well than it is to repair it once defects take hold,’ she added.
 
The advice comes as it was revealed that rents for some firms at the Dubai International Finance Centre business park could drop by as much as 50%. DIFC, the tax free business park for financial services companies, has announced a new matrix of rents.
 
Effective from January, the rents will run from AED160 to AED280 per square foot, depending on the size of the office and its location within DIFC. Officials at the DIFC Authority said that they were reluctant to give an official range for the drop in rents, as it varied from client to client.
 
‘It is difficult to assess the difference because the methodology in terms of implementing the rates is different. We are using a matrix system that varies in terms of location, building and size, whereas before it used to be a rate across the board,’ said Abdulla Al Awar, chief executive officer of the DIFC Authority.