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Little confidence in Dubai's rent plan - survey
by This email address is being protected from spam bots, you need Javascript enabled to view it on Sunday, 11 January 2009
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Results 1 to 8 of 8
Posted on Wednesday, 21 January 2009
Rent Increase in Dubai
Posted by Debby at 16:25 UAE time
Most Companies pay a new Hire approximate salary of AED4,000 of which 50% is listed as Basic, 30% is House Rent and 20% as Travel Allowance. An average studio (not new) today rents out at the inflated annual rent of 45,000AED (compared to AED18,000 of 3 years back) so if no sharing is allowed how are singles to manage? Even those earning a salary of AED10,000 pm and have a family here, half the salary goes on rent and another 30% on children's education...The RERA rent index will only be the last straw on the camels back!
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Posted on Tuesday, 20 January 2009
RERA INDEX
Posted by Philip at 18:58 UAE time
Mr. Abhay is absolutely correct . The index is a guide based on the extremely inflated and frankly exorbitant rates of the last three years . Rent should be no more than 20% of income for any given bracket. So if a average villa is 300,000 per annum then your income would have to be 1.5 million Dhs. per annum, that"s 125,000 per month. Unrealistic for most people and definitely not the average. As usual in Dubai Landlords want to charge the maximum for everything and pay the least for everything. RERA is a joke as they accept that every landlord in Dubai has dozens of brothers and sisters that they want to have living in their properties.
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Posted on Thursday, 15 January 2009
Index should not consider rent contracts less than 2 years old
Posted by Abhay at 10:35 UAE time
Am not sure how Rera will calculate the Index but I assume the index will be based on 2008 rentals. Rera should consider rentals of rent contracts which are atleast 3 years old. This is important since this will be the correct indicator of the real rentals. Rental contracts with age of 2 yrs & less should not be considered in the index since these will be the inflated rentals courtesy our greedy landlords and real estate brokers.
I am afraid that Rera is actually working for the landlord & real estate brokers lobby. I am not expecting anything positive from Rera. Lets see how this scene unfolds.
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Posted on Tuesday, 13 January 2009
Rents are damaging the country economy
Posted by dude2000 at 02:54 UAE time
My employer is down sizing the office to a very few people, relocating people to other countries in the region which far less cheaper to live and operate out of it. Reason being the landlord wants to increase the rent by 40% for contract renewal and the HQ is fed up with negotiating artificial prices within an artificial supply / demand market. We relocated people at lower housing allowance to countries in the region and they are managed to get twice bigger accommodation from what they had in Dubai at almost 40% allowance. Would you think people and business will stay? No because everybody wants to join forces and be flexible to survive the downturn in the economy.
I believe the index should be prepared based on actual rents signed (not the asking rent) and should be prepared by a body which sell it to individuals rather than having the government doing it (unless government ensure no one involve in preparing the index don't own or will not a real estate, which is impossible).
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Posted on Monday, 12 January 2009
market forces
Posted by paul at 12:23 UAE time
Rents cranked up during a boom and the relatively weak attempts to control this failed. Now the market will do the job on the way down too. There are huge swathes of empty apartments that cannot be filled as no one is hiring and plenty of people are leaving. Rents will collapse as surely as the house price bubble. The landlords simply cannot afford to keep all these apartments empty, they will end up fighting over tenants.
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Strategy
Posted by MasD at 11:13 UAE time
I think the Index will come first, then the rent cap. This way, a huge percentage of 2006-07 tenants will get a 30-40% hike instantly and then will be "PROTECTED" with the cap of 5 % next year. And obviously this helps the landlords and property prices. Which for property owners is good but for tenants not so good in the medium term.
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Rental Index
Posted by Jane Eddy at 10:40 UAE time
Has anyone considered the possiblility that not all landlords have been greedy and unscrupulous. If some people are fortunate enough to have a reasonable rent, could this not do even more damage in a time when spare cash is being used to keep businesses afloat amid economic chaos. If there is a minimum amount of rent to be paid does this mean the less greedy will have to push up their rental charges and potentially lose tenants of many many years. Why is it a government job to dictate rents, would it not be more advisable to have a watch body or department that can look at indiividual cases and determine if a landlord is being unreasonable and then have the power to actually do something about it?
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rent cap and index
Posted by abu Joseph at 08:23 UAE time
How irresponsible. Here we are in the middle of Jan and no one knows what the rent cap (if any!) will be for 2009. It should be announced no later than 15 Dec. Part of the course I guess.
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