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Discuss this article (3 Comments)Property experts across Gulf call for RERA-like index
by This email address is being protected from spam bots, you need Javascript enabled to view it on Thursday, 30 April 2009
INDEX WELCOMED: Property experts in Qatar and Kuwait say a rental index would help to improve transparency in the real estate market. (Getty Images)
Property experts across the Gulf on Thursday called for the introduction of a rental index similar to Dubai’s, as values plummet across the region.
Dubai’s property watchdog RERA (The Real Estate Regulatory Authority) has updated its rental guidelines in the face of massive industry pressure to create greater transparency and reflect values at current market levels, which have declined by up to 50 percent amid the downturn.
Experts in Kuwait and Qatar have broadly welcomed an index in their countries, saying any guidelines on rents would increase transparency.
Related: Interactive rental map of Dubai
“It would be a good thing. The more transparency and hard data in the market the better," said Reg Barichievy, general manager of property consultant Colliers International in Qatar.
Qatar’s property market has cooled rapidly in the last few months with a liquidity drought pushing land prices down by 30 percent to 35 percent and apartment prices by 30 percent, according to Colliers.
Raghu Mandagolathur, analyst at Kuwaiti investment bank Markaz said rents had fallen in Kuwait, but refused to say by how much.
Compiling an index would be made easier because rents were one of the components used by the Central Bank of Kuwait to set inflation, he said.
“Rents are definitely falling - an index would be useful,” he added.
Earlier in the week, a Markaz report on investment in the GCC, said rents were likely to fall in Kuwait because of the continued liquidity squeeze.
READERS' COMMENTS
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RERA index
Posted by vijay, dubai, u.a.e on Thursday 28 May 2009 at 22:16 UAE time
RERA is responsible for the loss of confidence of the investors and residents in the property market of dubai and has not helped any body by publishing and fixing the rents in the rental index it has tarnished the image of dubai as a free port and free market where the market forces decide the rents and value of property.RERA it seems a collection of landlords who have their own intrests above the intrests of the country and by their laws and index has further fuelled the inflation in dubai and helped in driving away the middle class families .They do not have any answers for the problems just consider the bur dubai area and one comes to know that the landlords have increased the rents by 50 to 75 percent of 20 25 year old properties and rera has bunched this properties with new properties which have extra facilties.the other gulf countries mainly bahrain oman and saudi arabia should not follow the rera and have a rera of their own as it would be a disaster for the residents.RERA has done nothing which should be duplicated by other gulf countries unless the govts of these countries are bent on bringing misery to the residents .
Posted by vijay, dubai, u.a.e on Thursday 28 May 2009 at 22:16 UAE time
RERA is responsible for the loss of confidence of the investors and residents in the property market of dubai and has not helped any body by publishing and fixing the rents in the rental index it has tarnished the image of dubai as a free port and free market where the market forces decide the rents and value of property.RERA it seems a collection of landlords who have their own intrests above the intrests of the country and by their laws and index has further fuelled the inflation in dubai and helped in driving away the middle class families .They do not have any answers for the problems just consider the bur dubai area and one comes to know that the landlords have increased the rents by 50 to 75 percent of 20 25 year old properties and rera has bunched this properties with new properties which have extra facilties.the other gulf countries mainly bahrain oman and saudi arabia should not follow the rera and have a rera of their own as it would be a disaster for the residents.RERA has done nothing which should be duplicated by other gulf countries unless the govts of these countries are bent on bringing misery to the residents .
rera like body?
Posted by JT on Thursday 28 May 2009 at 11:29 UAE time
why would they do that? is it because rera has been so successful in answering investor concerns? bringing out favourable laws? rera has caused a collapse in dubai property nothing else!
Posted by JT on Thursday 28 May 2009 at 11:29 UAE time
why would they do that? is it because rera has been so successful in answering investor concerns? bringing out favourable laws? rera has caused a collapse in dubai property nothing else!
Falling Rents
Posted by Tessa Allen on Thursday 30 April 2009 at 18:15 UAE time
When are people going to stop blaming the "financial crisis" and "liquidity squeeze" for all the regions woes...bottom line is rents are falling because every developer built on idle speculation as they thought it was a quick way to make a fast buck without giving a passing thought to what they were building, who it was for and whether there was a sustainable market for it.... "build and they shall come"...yeah right !!! Wake up people
Posted by Tessa Allen on Thursday 30 April 2009 at 18:15 UAE time
When are people going to stop blaming the "financial crisis" and "liquidity squeeze" for all the regions woes...bottom line is rents are falling because every developer built on idle speculation as they thought it was a quick way to make a fast buck without giving a passing thought to what they were building, who it was for and whether there was a sustainable market for it.... "build and they shall come"...yeah right !!! Wake up people
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