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No rent rise seen in 2009 as Rera brings in new index
by This email address is being protected from spam bots, you need Javascript enabled to view it on Thursday, 15 January 2009Posted on Wednesday, 28 January 2009
"comparing apples and oranges"
Posted by Hans at 15:29 UAE time
It would make sense to pay a comparable amount of money for a comparable apartment within the same area.
However, it wouldn't make sense to set up an average rental rate (RERA) for a 1/2/3 bedroom apartment in one area.
It doesn't make sense to charge a comparable amount of money for an older building as we all know that our landlords are not investing in their buildings. It does make sense to have a comparable rent for a comparable apartment but we shouldn't be "comparing apples and oranges".
A rent cap should be in place to protect the people who have been living/working in Dubai for years. Now it seems like these people will become the victim of another law...
Where the initial purpose of RERA was to protect it now seems to be having a totally different impact.
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Posted on Sunday, 18 January 2009
Rent hiking disgrace
Posted by Ronald at 10:59 UAE time
Its really disgracing to know that such acts are going on and are accepted in this country. The locals are supporting locals. Its clear indication that they support each other. Its not a matter that these highly paid so called professionals don't know anything about laws & rules. infact they are paid for making these types of rules, where upon the others suffer
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Posted on Saturday, 17 January 2009
LAW NO:13
Posted by mkp at 05:59 UAE time
Though I am not an investor in the Dubai realestate market I keep abreast of realestate in cerrtain parts of the world.
Your article mentions "A further shake up of the payment plan structure will see investors having to pay a 30 percent lump sum with the remaining 70 percent paid in installments during construction." That's good both for the developer and the end user.
I have the following concerns:
1.What about buyers who have paid 50% in the beginning of 2008 and the developer has not started construction as yet?
2. What about developers who have delayed projects yet demand instalments as scheduled?. A law should be promulgated that the instalment date should also be moved forward in case of delay.
In Canada if a developer delays possession beyond 120 days from the agreed date of possessionthe buyer has a right to demand all his instalments from the developer and cancell the contract. At the same time the instalments are also delayed accordingly, in case the buyer still wants the property.
Those developers who have not started construction should abandon their project and refund the money to the buyers as is the case in Canada during the credit crunch.
Let us see if the developers follow the law to keep 30% and refund the rest of the money or keep 10% and refund the rest of the money. What action the Land Department will take or how will the Land department help the buyer to get his money? This law should also be promulgated.The developer may procastinate to refund the money.
If the buyer is not protected 100% by the authorities concerned I am positive that confidence in the Dubai property market will be lost forever.
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Posted on Friday, 16 January 2009
Now they come up with an index!!!
Posted by Ibrahim Sadek at 05:36 UAE time
Hats off to the ingenious planners at RERA or whatever or whoever actually thinks in his or her deluded mind that they're "regulating" the market. Isn't it just a bit too late to get the index out and to remove the cap? No one's buying, rent supply is low, demand is high, professionals are escaping europe to come to dubai, which any grade school student would tell you means that everybody is renting these days. So, would it really be a wise move to remove the cap and give landlords free reign to screw tenants over at their discretion? I've tried long and hard to understand the government's logic, or more accurately, illogical ideas and I've come up with one solution. Maybe it's a population control thing?
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Posted on Thursday, 15 January 2009
What what what?
Posted by Martin Bishof at 01:52 UAE time
Residential properties have been divided into apartments and villas and based on the size of the building only, and no other criteria in the Rera Index. The index should be used as a minimum and maximun guideline? Guideline for what? Best wishes and dreams? How do decision makers think investors will cover their loses on the stock exchanges? I tell you, theyincrease the rents to balance their accounts.
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My flat rent increesed 60 %
Posted by Jabir at 22:14 UAE time
In this current financial crisis,and people are loosing thier jobs, my land loard increesed my appratment (Abusagara Sharjah) rent from 30,000 AED to 48,000.
Land lords are not at all listning.He wants more money from the existing building it seems.Very greedy land lord.
Jabir.
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rent increases unlikely
Posted by bryan at 18:36 UAE time
The stoppage of construction on nakheel is an indicator of how bad the situation is and how much worse it is going to get. There is only so much a market can take, it seems Dubai's lofty ambitions have come crashing on its face.
Rents will not only not rise they will plummet, wait and see, it does not require the genius of stan chart , it is common sense, five to six months down the line this will ring true, many expats are sending their families back home--- and dubai will do an about face on salary limits for families, obviously all these plans of grandeur, ice skating, palm island etc were not well thought out.
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Rents in Dubai
Posted by M. at 17:59 UAE time
It is a Pollyanna prediction that rents will be falling.
My landlord has abided by the rent caps (more or less), but as for rents not increasing, the rental agent told me that new tenants were paying about Dh 80,000 for one-bedroom flats in my building last year, but are queuing up to pay Dh 95,000 for the same flats this year. In spite of the layoffs, there are still more people working in Dubai who need flats than there are flats available in Dubai.
My rental agent said his company was going to send someone to RERA to find out the rules on rent increases for this year. They would like to increase rents on existing tenants to the market rate of Dh 95,000, but said they are closely watched by RERA and will not raise rents without permission.
So I will not know my rent for next year until my contract comes up for renewal.
But my own informal survey shows that rents are still increasing in Dubai.
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Greedy landlords...
Posted by Unhappy chappy at 15:24 UAE time
there will always be greedy landlords while the locals rule the roost and have no come back on them when they rip you off. They employ these estate agents who bump up the price blaming the owner for the rise, yet they want there cut too, for doing what? I'm glad your all being hit were it hurts, as i have for the last 4 years, increase after increase. It maybe a great country to be in, due to the weather and the opportunities but it doesn't mean you should rip us off for being here.
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Agent Commission Fees?
Posted by Joe Karcia at 14:51 UAE time
This is a new norm i have been experiencing. I find a building myself. I go there and ask the watchman to show me any to let in the building and if i like it, watchman gives me a number to leasing office. I visit them and when i agree on the rent, I have to pay 5% commission to the agent. Can someone make sense to me why do I have to pay him commission when he did not find the apartment for me nor has he done any favour to me? Its like me walking to a shop to buy nice pair clothes and then i have to 5% of the total bill to the salesman.... This country is full of daylight scams. Curse be on all filthy, greedy and ugly real estate agents and landlords.
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Expatriates should not be allowed to operate real estate markets in UAE
Posted by Rajmohan at 14:44 UAE time
Most of the real estate offices (Estate Brokers) are operated by greedy expatriates and these excess money squeezed from UAE residents are being transferred to their home countries. Government needs to setup its own department to handle the rental & property markets, By doing so we could have the following advantages:
1. Generate employment to nationals
2. Check on property markets
3. Stable real estate price, helps in retaining skilled labour force for furture developments in UAE
4. Financial stability in property markets.
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Greedy Landlords
Posted by I Ekanayake at 14:28 UAE time
Having no rent caps is just going to create an open season on the already HEAVILY burden tenant. The government should regulate the rent, instead of letting GREEDY land lords to do as they please. Greed is one of the major problems of Dubai, and unless it is heavily regulated, Dubai will continue to lose more money in the near future.
Having lived in the country for the past 23 years, I have seen Dubai go from reasonable, to bad to WORSE.
Dubai the City that Cares.... haha what a joke!
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Are the people in RERA living on the same planet?
Posted by Samer at 14:11 UAE time
What are exactly they talking about?
My landlord just sent the new contract renewal letter with the much expected increase...
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Declaring No Hike Is No Solution
Posted by Nirav Chovatia at 14:10 UAE time
We all had already paid much more rent that is not needed in reality. Due to inflation we had all paid high and now we are waiting for decrease in rent as all the things in world is moving on a declining path. As a result rents also should decline, but unfortunately it is stable now at 2008. For eg. average rent for 1 BHK is AED 90,000 so one has to make a income of AED 7,500 per month to live in that flat. This is very high and how can people survive with this rent. So in my opinion it should go down furthur that makes people to survive here with family and live a happy life without loans and credit cards.
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RENT INCREASE NOTIFICATION BY 185%
Posted by S Kumar at 13:41 UAE time
All this is extremely confusing. In the absence of clear directives from the Govt., and concerned authorities, decision on rents in Dubai is clearly at the helm of the landlords and I am sure the rent comittee will see a surge in the no. of complaints being registered. I have recvd a notification from my landlord stating almost 185% increase in the rent and this is a reality for me. Although I have replied to the notification, I am still awaiting feedback on the same & that will decide my fate. Everyone also need to understand that with the increase of rents proposed what is the change in the quality of life. The Building I stay do not have any amenities except that the flat is spacious and nothing more.
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