UAE: Landlords, developers to bear main cost of property damages after extreme weather

Homeowners are busy restoring services for the tenants and bringing their properties back to pre-flood level


Waheed Abbas

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Published: Wed 24 Apr 2024, 12:40 PM

Last updated: Wed 24 Apr 2024, 10:18 PM

Many tenants in Dubai and Sharjah affected by last week’s extreme weather that led to water accumulation are being protected from huge losses by companies and landlords. However, tenants with minor damages are contracting maintenance companies for repairs.

Dubai’s top developers, Emaar Properties, MAG, Damac Properties, Nakheel, Dubai Holding, Union Properties and Dubai Investment Park, have offered free services to tenants affected by the storm.

People residing in the major freeholder areas in Dubai, such as Business Bay, Downtown, Jumeirah Beach Residence (JBR), Jumeirah Lakey Towers, International City, Palm Jumeirah, Damac Hills, Dubai Marina, Mudon, Discovery Gardens, Remraam, Arabian Ranches and many others will benefit from these initiatives that the government and private developers have driven.

Under the law, landlords are required to provide maintenance for the property unless the tenancy contract states otherwise.

In Sharjah, master developer Arada also announced major initiatives that would support the people in Sharjah.

Arada has partnered with the Sharjah Social Services Department to provide housing for up to 3,000 people affected by the flooding, who will be based in the Nest complex in Aljada. Priority is being given to vulnerable members of society, especially children, the elderly and people of determination. Transfers are taking place in stages, with the first families moving in on Monday, April 22.

“As a key member of the private sector, we are committed to providing essential support to as many people as we possibly can during these challenging times for the Sharjah community. We have mobilised a number of our departments and will be announcing further initiatives in the coming days,” said Ahmed Alkhoshaibi, Group CEO of Arada.

The UAE recorded the highest rains in 75 years on April 16, resulting in flooding in many areas across Dubai, Sharjah and Ajman. As a result, many tenants were left with no electricity and water.

Landlords to help

Real estate industry executives say that landlords in Dubai and Sharjah will shoulder the maximum cost for the maintenance of properties due to the floods after the record rains witnessed last week.

Landlords are currently busy restoring services and bringing their properties back to pre-flood level.

“Frankly, the landlords have incurred significant expenses due to the damages caused, which may or may not be covered by insurance. Most landlords are trying to restore services such as electricity and lifts affected by the rain, aiming to minimise inconvenience for tenants. If basement parking is flooded, they are doing their utmost to have the water removed,” said Niral Jhaveri, director of property management at Betterhomes.

As reported by Khaleej Times, insurance companies are seeing increased claims after the record rains.

Jhaveri said they were fortunate that none of their managed units were significantly affected in the rains, but experienced water clogging in the basement, which has since been cleared.

Niral Jhaveri
Niral Jhaveri

Pro-active tenants

Svetlana Vasilieva, head of secondary sales at Metropolitan Homes, said tenants who experienced damage and were not too badly affected were contracting maintenance companies for repairs.

“Who will pay for these repairs will be a negotiation between landlord and tenant unless there are specific clauses that address the issues,” Vasilieva said, adding that providing relief to the tenant in terms of free rental months will depend on the generosity of the landlord and if they have insurance and the relationship with the tenant.

Svetlana Vasilieva
Svetlana Vasilieva

Record maintenance

Anisha Sagar, director of property management at Allsopp & Allsopp Group, said they have received a record number of maintenance issues and all landlords are working with the firm to rectify the damage.

“Most tenants understand that this is an unexpected natural event which is out of all owners’ control. However, landlords have been willing to help fix any of the issues and are working closely with us for these fixes.”

Anisha Sagar
Anisha Sagar

Sagar added that last week’s situation has truly been an unprecedented time for landlords, tenants and management companies alike.

“Some landlords have had more damage than others to their properties and have worked with us to manage that damage and return clear water and electricity as quickly as possible to their tenants,” she added.

Sagar said that the priority is to get all properties back in good condition as quickly as possible.


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