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Discuss this article (15 Comments)Poll shows 63% think RERA index 'unhelpful'
by This email address is being protected from spam bots, you need Javascript enabled to view it on Saturday, 09 May 2009
NOT HELPING: The majority of responders to an online poll say RERA's rental index will prevent tenants getting the best deals. (Getty Images)
Almost two thirds of those responding to an online poll have warned that official rental indexes could prevent tenants from being able to secure the cheapest deals.
The poll was carried out by Arabian Business on the back of a new rental index for Dubai - drawn up by the Real Estate Regulatory Authority (RERA) and publlished at the end of April.
The index indicates that rents have plummeted by up to 50 percent in some areas, compared with a similar index issued in January.
However, of those responding to the poll 63 percent thought they were actually more unhelpful than helpful, as they curtailed a completely free market, and prevented individuals from negotiating even better rents.
Related: RERA's April 2009 rental index
Another 16 percent thought they did “not really” help as the really good deals still involved a one cheque payment, which was difficult to meet under current banking restrictions on lending.
Meanwhile, 11 percent thought such indexes were “fairly” helpful, as they gave tenants an idea of the price they should be bargaining for.
But, just 10 percent thought they were a good idea because they made it crystal clear to tenants and landlords, how much should be paid in given locations.
The new index appears in the form a 'Rental Increase Calculator' on Dubai property watchdog RERA’s website allowing landlords to set rents in Dubai.
READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
landlords are already misusing the index
Posted by Leo, Dubai, UAE on Monday 11 May 2009 at 14:52 UAE time
My landlord has already started misusing it. The rent for a 2 bedroom apartment (as per the index) is 80K-120K. The recently vacated 2 bedroom apartments are being rented out at 60-65K but the rent for the old tenants who are paying 50-55k for this apartment is being increased by 20% giving reference to the rental index.
Posted by Leo, Dubai, UAE on Monday 11 May 2009 at 14:52 UAE time
My landlord has already started misusing it. The rent for a 2 bedroom apartment (as per the index) is 80K-120K. The recently vacated 2 bedroom apartments are being rented out at 60-65K but the rent for the old tenants who are paying 50-55k for this apartment is being increased by 20% giving reference to the rental index.
RERA should reconsider
Posted by Christopher on Monday 11 May 2009 at 11:57 UAE time
RERA should reconsider their Index according to the database suggested by the Dubai reader at 04:26;
I.E.: 1. Rent
2. Charges related to rent (maintenance, chiller, electricity..etc)
3. Payments
4. Deposits
5. Space area of the unit
6. How many rooms
7. Services (fitted kitchen and appliances, satellite channels, parking space .etc)
8. Type
9. Location
Posted by Christopher on Monday 11 May 2009 at 11:57 UAE time
RERA should reconsider their Index according to the database suggested by the Dubai reader at 04:26;
I.E.: 1. Rent
2. Charges related to rent (maintenance, chiller, electricity..etc)
3. Payments
4. Deposits
5. Space area of the unit
6. How many rooms
7. Services (fitted kitchen and appliances, satellite channels, parking space .etc)
8. Type
9. Location
RERA
Posted by George Ittyarah, Dubai, UAE on Monday 11 May 2009 at 00:30 UAE time
Present low rent in Dubai is a matter of comfort & relief to every one. This low rent trend has to go at least another 40% more to downward to justify life in Dubai with an average 10-20% saving to any one removing all living expenses here. Completion of surplus new residential buildings in & around Dubai will help achieve this target. This low rent atmosphere was not brought by RERA or any one. RERA has nothing to do with the present rent fall like the low oil price was not brought by OPEC. It is part of world recession silently hitting countries to bring them into their practical common sense from unlimited dreams and greedy ambitions that really crushes ordinary people to the pit. Otherwise these greedy people will never learn. Ups & downs of Dubai home rent is determined by the demand factor of the expat floating population here. If there is no demand by expat community, why RERA has to mess up things again creating unnecessary rent barriers for certain areas, buildings, veiws of parks and seas and other sights?
Thanks
George C. Ittyarah
Posted by George Ittyarah, Dubai, UAE on Monday 11 May 2009 at 00:30 UAE time
Present low rent in Dubai is a matter of comfort & relief to every one. This low rent trend has to go at least another 40% more to downward to justify life in Dubai with an average 10-20% saving to any one removing all living expenses here. Completion of surplus new residential buildings in & around Dubai will help achieve this target. This low rent atmosphere was not brought by RERA or any one. RERA has nothing to do with the present rent fall like the low oil price was not brought by OPEC. It is part of world recession silently hitting countries to bring them into their practical common sense from unlimited dreams and greedy ambitions that really crushes ordinary people to the pit. Otherwise these greedy people will never learn. Ups & downs of Dubai home rent is determined by the demand factor of the expat floating population here. If there is no demand by expat community, why RERA has to mess up things again creating unnecessary rent barriers for certain areas, buildings, veiws of parks and seas and other sights?
Thanks
George C. Ittyarah
Index is useful, however quality of index needs improvement
Posted by Property Guru, Dubai, UAE on Sunday 10 May 2009 at 19:44 UAE time
Taking example of Springs Villa, The index should look like :-
- Rental : AED 63/- per sq ft.
- Add : AED 1500/- for landscaping.
- Add : AED 5000/- for park view.
- Add : AED 10,000/- for lake view
- Add : AED 5000/- for private pool.
In nutshell, rent per sq ft and price of facilities / views as a footnote will be a better presentation and good differenciation.
Posted by Property Guru, Dubai, UAE on Sunday 10 May 2009 at 19:44 UAE time
Taking example of Springs Villa, The index should look like :-
- Rental : AED 63/- per sq ft.
- Add : AED 1500/- for landscaping.
- Add : AED 5000/- for park view.
- Add : AED 10,000/- for lake view
- Add : AED 5000/- for private pool.
In nutshell, rent per sq ft and price of facilities / views as a footnote will be a better presentation and good differenciation.
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