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Dubai Rent Hike Contained

Rent increases will be contained in 2010, according to a decree issued on Wednesday, which says that rent can only rise if it is at least a quarter below market values.

His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, in his capacity as the Ruler of Dubai, issued the decree to set the formula to be used for the rent index.

Shaikh Mohammed first introduced the system in January 2009 with the base that a property’s rent must be at least a quarter below similar properties before it can be increased. It is used in conjunction with an index of the Real Estate Regulatory Agency or RERA.

“For properties rented in 2009 or earlier, the maximum increase in rent shall be as per the previous decree for 2009,” a statement issued by official news agency Wam said.

“The decree approves the (RERA) price index, which shall be followed as the reference for setting any increase in rent values in 2010.”

The decree is aimed at ensuring stability in Dubai’s property market and creating legislation that promotes landlord-tenant relationships.


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