Little confidence in Dubai's rent plan - survey

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NO TEETH: Dubai's in-coming rental index will fail to stop rising rents, according to an online poll. (Getty Images)

The introduction of a rental index in Dubai will have no effect on curbing the spiralling cost of rents, according to responders of an online survey.   

Almost 45 per cent of those taking part in the Arabian Business poll said the rental index, which will set minimum and maximum rents across the emirate would fail to reign in unscrupulous landlords because the regulator will have no powers to enforce it.

The index which has been drawn up by the Real Estate Regulatory Agency's (RERA), is awaiting approval by the Dubai government and is set to be released at the end of this week, following the announcement of the 2009 rent cap - last year this saw a 5 per cent hold put on increases.

Other results from the poll show that around 39 percent believed the index would stop one-off extortionate rent hikes, but would have little impact on overall rises, while 11 percent thought the move would improve the overall situation as tenants would have more power to challenge unfair hikes.

However, only 5 percent believed it would solve all rental problems.

Commenting on the issue last week, Mohammed Khalifa bin Hammad, director of Rera's real estate relation regulatory said: “The rental index for residential and commercial units is ready and will be launched soon. The regulations for its implementation have been finalised but are awaiting approval from the Ruler's Court."

High rents have long been the bugbear of many residents in Dubai. Experts say the index will give greater transparency to the rental system, helping stamp out cases where tenants are over-charged.

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