This year has brought a lot of positive change for Dubai, whether it was from winning the right to host the World Expo 2020 or having its GDP rate rise by 4.7 per cent. However, with all of these opportunities the rent in Dubai has risen considerably, causing tenants everywhere to panic.
In issuing the decree No. 43, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, states that there should not be any increase, if the rent of the property unit is less than ten per cent of the average similar rent value. Similarly, if the rent value is 11 per cent to 20 per cent less than the average rent value, the maximum rent increase should be equal to five per cent of the rent value. Moreover, if the rent value is 21 per cent to 30 per cent less than the average similar rent value, the maximum rent increase should be ten per cent of the rent value. He adds that if the rent value is 31 per cent to 40 per cent less than the average similar rent value, the maximum rent increase should be 15 per cent of the rent value. Finally, a maximum rent increase of 20 per cent is applicable, if the rent value is less than 40 per cent or more of the average rent value.
According to a property consultant firm, Cluttons, whose figures were issued in November 2013, the locations that rose the most in price this year are Emirates Living and Dubai Marina, with an 8.5 per cent to ten per cent increase, as well as Jumeirah Village, being the strongest of them and leading with an 18.4 per cent increase.
The Real Estate Regulatory Agency (RERA) was established as a result of a law issued by His Highness, in 2007. RERA has set a legislative framework that regulates renting property in Dubai. Hence, landlords cannot randomly increase rents for tenants whenever they please, but they must stick to this decree, as stated by His Highness. This decree pertains to landlords from the private and public sectors in Dubai, including private development areas and free zones.
Monday, December 23- 2013 @ 8:37 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.