Abu Dhabi's 5% rent cap still in place

The five percent rent cap imposed in Abu Dhabi last year is still effective and will remain valid until a new rent cap for this year is announced, a senior official confirmed on Wednesday.

The comments from Mohammad Rashid Al Nuaimi, head of the rent dispute settlement committee in the capital, came alongside new figures that showed 145 cases of rent disputes had been filed this year, until Jan.18, according to UAE daily Gulf News.

It also follows a move in Dubai on Monday to freeze rents in 2009 for tenants who signed their contracts last year.  

"All rent disputes [now] are dealt with [in keeping with] the five percent rent cap of 2008,” said Al Nuaimi.

"About 7 to 10 cases are filed every day. We have to wait for the government decision on a new rent cap," he added.

The government of Abu Dhabi reduced the annual rent cap from seven percent in 2007 to five percent in 2008 in an effort to control the escalating housing crisis in the emirate.

According to Al Nuaimi fewer complaints were received in 2008 than in 2007.

"About 3,078 complaints were filed in 2008, whereas the number of complaints was 4,937 in 2007," he said.

Meanwhile, a senior official at the Abu Dhabi Chamber of Commerce and Industry (ACCI) revealed that rents in Abu Dhabi were unlikely to increase further.

"The rent may not fall soon because it will take time to fix the shortage of housing, but I can say that at least it [rent] will not increase," said Khalfan Al Ka'abi, chairman of the construction committee at ACCI.
 
Completion of construction projects in the capital would not be affected by the financial meltdown, Al Ka'abi added.

"Some work may slow down, and like if you are travelling at 200 miles per hour, you may have to reduce the speed to 60 or 80 miles per hour, but no project has been stopped," he said.

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