An open letter to the affected residents of the Greens, from a group of fellow residents
Dear Tenant,
As I am sure you are aware by now, EMAAR management have issued letters to tenants of 3 blocks in the Greens, stating that they have decided to put these apartments up for sale. The sale will involve over 300 apartments, and hence at least 300 families.
The letter clearly states that tenants have the option to purchase their current accommodation. If they do not accept the terms offered, and purchase the property within two weeks, the property will be offered for sale to the open market. A group of the tenants who have discussed the matter feel that this decision is unreasonable for several reasons.
Firstly, it allows very short time for those interested to purchase their properties to make a decision, forcing them to accept EMAAR’s suggestion to use AMLAK at the given interest rate of 8.25%. There appears to be very little in the way of concessions to loyal tenants in the way of discounted prices or waived fees in return for the years of tenancy.
Furthermore, residents who have enquired to AMLAK about the mortgage terms have found that the 97% mortgage offer only applies to the original price of the property, meaning that residents would need to find the balance which is in all cases is several hundred thousand Dirhams.
Most residents cannot afford to buy, and so their property will be sold within two weeks on the open market. The tenants’ leases will be transferred to the new owners, but once any remaining lease period expires, the owners will be free to take possession or force the tenant to accept new terms. This will result in the tenants’ rents increasing by 50-60%.
So in the space of two weeks, tenants will go from the relative security of a long term lease with 0% rent increase, to a situation where they have no option but to face massive rent increases with a new landlord or be homeless, in some cases within less than month.
A group of tenants have formulated a letter representing our concerns and fears. This will be sent to prominent figures at EMAAR and the Government of Dubai, urging them to reconsider their decision and the hardship it will impose on the affected residents. We hope that as many affected residents as possible will sign the petition and thereby make Emaar and the government aware of the worrying situation we find ourselves in.
Recently, residents of the Gardens successfully lobbied to have Nakheel’s decision not to renew their leases reversed. We hope that by drawing the attention of key figures and decision makers to our plight, we can achieve a similar result.
EMAAR’s decision seems contrary to the spirit of the Dubai government’s initiative to cap rent rises and stabilize rental prices. Far from being an opportunity for most residents, it will result in them being forced to accept huge rent increases or leave their homes when their current lease agreement expires. We are confident that once EMAAR considers the effect on the tenants, their families and the success of the Dubai government’s attempts to control inflation, they will reconsider their proposals.
Sincerely.
Concerned residents of the Greens
