Change in Dubai rent index
It used to be altered three times a year, but as of now the price-controller will only be updated annually.
More…
– Know your property rights
– Dubai property prices fall
The Dubai rent index is now only going to be updated once a year according to an email the Dubai Land Department sent to Emirates 24/7.
The index, which works to avoid arbitrary rent increases from landlords, used to be reevaluated every four months.
As of now, it will only change once a year (so the rates released on January 1st will remain those for 2015).
Launched in 2009, the index sets an average price bracket for properties that controls whether a landlord can legally ask tenants for more money. It aims to create transparency and avoid landlord-controlled spikes in rent.
The Real Estate Regulatory Agency (Rera) is reportedly going to release a more detailed rental index soon which will take into account things like views, facilities and the age of a building when determining what its rent should be.
REMINDER OF THE RENT INDEX’S RULES:
– If the rent of a property is less than 10 per cent of the average rent of a similar property in the same residential area there should be no increase.
– If the rent of a property is between 11 and 20 per cent less than the average rent of a similar property, the maximum increase is 5 per cent of the rent value.
– If the rent of a property is between 21 and 30 per cent less than the average rent of a similar property, the maximum increase is 10 per cent of the rent value.
– If the rent of a property is between 31 and 40 per cent less than the average rental of a similar property, the maximum increase is 15 per cent of the rent value.
– If the rent of a property is less than 40 per cent or over the average rent of a similar unit, the maximum increase is 20 per cent of the rent value.
