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Property rental index to start early next year
by This email address is being protected from spam bots, you need Javascript enabled to view it on Tuesday, 19 August 2008
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Results 1 to 8 of 8
Posted on Sunday, 24 August 2008
index - do you think lanlords will follow it?
Posted by BMahesh at 13:31 UAE time
I think if this index is just to act as a guideline...then sorry to say it is a waste of time...guideline for whom? The landlord who does not even acknowledge something being introduced by the government and residents hoping it turns into a law. There is no logic behind the inflated price hike, the square meters and facilities do not increase according to the price so what are we paying for the luxury lifestyle of the landlord? Or is it because every land / building owner is hiking prices, all landlords jump on the bandwagon! With the rent cap at least you know that next year you have to chill out this much more from your home budget for the rent...pay scales do not increase in line with the inflation rate so from where are people going to pay the rent...of course this gives rise to effect of socio-economic growth crime and greed. Comment from another reader was very true...people from surrounding countries who have visited Dubai in the hope of earning a good living have been discouraged due to the rent hikes, increase in general of cost of living, becoz they are offered double in their own home countries due to their countries economic growth that their success even encourages people already settled here to go back to their home countries. Just check the statistics of how many people have sent their families back home due to the inflation. You have that many people doing bad publicity anyways becoz their lives have been affected due to rising costs.
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Posted on Wednesday, 20 August 2008
More transparency needed
Posted by The Consultant at 10:22 UAE time
Issuing an index of average rents is a waste of time. The average in any area will be brought down by people who have been a unit for several years and who have been protected by the rent cap (there are a few landlords who abide by the rules!).
If someone happens to be renting, say, a 3 bedroom townhouse for AED 95,000 because they have been in it for 3 years, this is of no relevance to me; as a new tenant I would have to pay the current rate which is more like AED 200k.
What Rera need to do is join together with the Land department and produce a transparent listing of property transactions (sales and rentals) that is detailed enough to be of use to individual buyers and renters, i.e. detailed location, type of property, size of BUA and plot and sale/rental price. This way people can see for themselves what the prices are and can counter agents and landlords who try to exaggerate the price.
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What about Abu Dhabi?!
Posted by Noura at 10:16 UAE time
While I too, appreciate RERA's efforts, I am finding it so hard to believe that:
a) it took the gov't this long to launch these 'guidelines'
b) that these aren't legally binding = landlords can basically still do whatever they're doing
c) such 'guidelines' aren't being adopted in the Emirate of Abu Dhabi
How much longer do we have to suffer high rent, high inflation and high CPI before the government does something really worthy of posting a press release on?
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Rental Index: A waste of effort
Posted by Waqqas at 10:15 UAE time
As already mentioned by others here, what is the benefit of having this index without any legal binding? It sounds just a cosmetic step to tell the outside world that we have a Rental Index in place here in Dubai, the uselessness of which they may realise only when they will have the face the reality practically .... i.e. if no one tells them about it in beginning.
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Rent guidelines
Posted by tessa morris at 09:33 UAE time
As if landlords in Dubai will price their property according to any guidelines given by Rera. 2 bedrooms villas in the Springs valued at between 90 000 and 130 000 AED per year are being rented out for a MINIMUM of 180 000. If the system is not legally binding what is the point. A quick look in the paper gives you the average overinflated prices of rental properties.
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Posted on Tuesday, 19 August 2008
Rent
Posted by Roberto at 17:23 UAE time
I fail to see how this will help when you consider the increase in rent in the past few years.
salaries are just not rising to keep in line with the increase in costs and rent is one of the highest rising costs.
salaries for new workers are also not on offer and the cost of rent in Dubai has spread like wildfire to countries like India, UK and Pakistan so new recruits are already as aware of the very high cost of rent, as much as they are aware of the traffic problems.
If the government does not take real action to control fundamental costs like rent it will be increasingly harder for companies to retain or recruit staff who want to come here to save money whilst they work overseas.
Justifying the high price of rent by semi scientific rental index is merely papering over the cracks.
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Property Rental Index
Posted by Suri G at 17:12 UAE time
The investors can prepare their strategy by the Index. How about Tenants! Why is the index not legally binding, what is the recourse for tenants, if they are charged excessively
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Not legally binding !!
Posted by Ramanan at 16:43 UAE time
While I appreciate RERA's move on the property rental index, I fail to understand how does this help if it is not legally binding on landlords. As for landlords, they need dictators of rent and not indicators !
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