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Discuss this article (9 Comments)60% say RERA should scrap its rental index
by This email address is being protected from spam bots, you need Javascript enabled to view it on Wednesday, 28 October 2009
RENTAL VALUES: A majority of people who took part in our poll thought the RERA rental index was a waste of time. (Getty Images)
More than 60 percent of people think that Dubai’s Real Estate Regulatory Authority (RERA) should scrap its rental index, according to the latest Arabian Business poll.
Some 60.3 percent of respondents said the real estate watchdog always got rental price wrong, so should scrap the index because it was misleading.
A further 11.7 percent of people said the index was not necessary because the city’s property market dictated itself.
Related: RERA's October 2009 rental index
While 14.9 percent said RERA should continue to release its rental index if it got the prices right, because some properties were priced too high.
Only 13.1 percent said the index was a valuable service for landlords and tenants.
Last week RERA released its new rental index for apartments and villas in Dubai. Rental values for apartments were lower in the October index compared to the previous index published in April. However, many examples in the latest index indicated that villa rents had held their price or even risen.
One reader, who posted a comment on Arabian Business, wrote: “I do not believe the data by RERA – the rental rates they quote are extremely bloated.
“This agency is just an organisation for real estate owners. It is not for the consumer! Check Dubizzle for real rates!”
Dubizzle, the classified website, is the first point of call for many tenants looking to rent a property, and most, if not all, property agents advertise their lettings on its pages.
Often, the prices advertised here are less than those quoted by the RERA index.
READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
RERA Index
Posted by Petrometro, London, UK on Monday 2 November 2009 at 14:32 UAE time
Riaz, with the greatest respect, if you have been at a RERA court you would know that the tenant is the one being protected, not the landlord. My friend owns an apartment and he was taken to RERA because the tenants he had couldn't stomach all their friends negotiating lower rents with landlords whilst he was paying a higher rent for the next 10 months. He Lost. This is a very rare situation and luckily for my friend who like me lives in the UK we have a very savvy representative in UAE who defended us. By and large though tenants get the benefit of the doubt not the landlords, until it is proved that the landlords situation is proved otherwise. A developer is subject to another court, not RERA
Posted by Petrometro, London, UK on Monday 2 November 2009 at 14:32 UAE time
Riaz, with the greatest respect, if you have been at a RERA court you would know that the tenant is the one being protected, not the landlord. My friend owns an apartment and he was taken to RERA because the tenants he had couldn't stomach all their friends negotiating lower rents with landlords whilst he was paying a higher rent for the next 10 months. He Lost. This is a very rare situation and luckily for my friend who like me lives in the UK we have a very savvy representative in UAE who defended us. By and large though tenants get the benefit of the doubt not the landlords, until it is proved that the landlords situation is proved otherwise. A developer is subject to another court, not RERA
RERA
Posted by Riaz, Sharjah, UAE on Monday 2 November 2009 at 13:59 UAE time
RERA is for protecting the developer-
It doen't make any sense in RERA index!!
Hand in glove-
Posted by Riaz, Sharjah, UAE on Monday 2 November 2009 at 13:59 UAE time
RERA is for protecting the developer-
It doen't make any sense in RERA index!!
Hand in glove-
RERA rental Index
Posted by Petrometro, London, UK on Sunday 1 November 2009 at 23:52 UAE time
Dubai is a market economy not some soviet apparatchik state. Demand and supply in turn dictate rates, not "spurious" indexes dreamed up by bureaucrats in an office. I have a friend who has let 4 villas in arabian ranches at 30% above the high in the endex. Why? The tenants liked the property so much they were preparaed to pay a premium. If your property is taken care of, is offered to the market in best condition with landscaped gardens and so on, there will always be a premium to be paid. There is nothing, as a landlord, against the law to say that you have to accept an offer within the index. If it were the case then why bother viewing apartments and villas in the first place!!
Posted by Petrometro, London, UK on Sunday 1 November 2009 at 23:52 UAE time
Dubai is a market economy not some soviet apparatchik state. Demand and supply in turn dictate rates, not "spurious" indexes dreamed up by bureaucrats in an office. I have a friend who has let 4 villas in arabian ranches at 30% above the high in the endex. Why? The tenants liked the property so much they were preparaed to pay a premium. If your property is taken care of, is offered to the market in best condition with landscaped gardens and so on, there will always be a premium to be paid. There is nothing, as a landlord, against the law to say that you have to accept an offer within the index. If it were the case then why bother viewing apartments and villas in the first place!!
RERA INDEX
Posted by GMX, DXB, UAE on Thursday 29 October 2009 at 11:58 UAE time
I agree with MM. All the parties making these rulres and regulations have thier own vested interest .They are all benfitting from the laws in one way or the other. The rent index has just encouraged greedy building owners to increase the rents in downtown Dubai- where the majority of the middle class families live. At this moment of time when we are hit by the recessions may have both husbands and wifes working, and sharing a flat with another family because of the redicolous rents these building owners and Real Estate Companies charge.The culprit in this business is the real estate companies who just hike the rent for no reasons. Often you would find that taking renting an apartment from the direct owner is cheaper than getting it from the Real Estate Company. Many tenants living in Ghusiais and Al Nadaare facing another type of problem, afetr the first year of occupancy when u want to renew the falt real estate comapnies increase the rent, they say take it or leave it. The ploy is to leave the flat and take another falt of a cheaper rent reason the realestate get commission on new Tenancy contract Nothing on renewal. Just Unreal
Posted by GMX, DXB, UAE on Thursday 29 October 2009 at 11:58 UAE time
I agree with MM. All the parties making these rulres and regulations have thier own vested interest .They are all benfitting from the laws in one way or the other. The rent index has just encouraged greedy building owners to increase the rents in downtown Dubai- where the majority of the middle class families live. At this moment of time when we are hit by the recessions may have both husbands and wifes working, and sharing a flat with another family because of the redicolous rents these building owners and Real Estate Companies charge.The culprit in this business is the real estate companies who just hike the rent for no reasons. Often you would find that taking renting an apartment from the direct owner is cheaper than getting it from the Real Estate Company. Many tenants living in Ghusiais and Al Nadaare facing another type of problem, afetr the first year of occupancy when u want to renew the falt real estate comapnies increase the rent, they say take it or leave it. The ploy is to leave the flat and take another falt of a cheaper rent reason the realestate get commission on new Tenancy contract Nothing on renewal. Just Unreal
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