E-mail Article
Printer Friendly
Share Article
RERA announces house price index plan for 2010
Dubai's real estate watchdog has announced plans to introduce a house price index in early 2010, similar to its rental index.
Mahmoud Hesham Al Burai, director of Development at the Real Estate Regulatory Authority (RERA) said that the property price index would help to benchmark property values in the emirate.
"We will announce the price index in the beginning of next year," Al Burai said in comments published in Khaleej Times on Tuesday.
The price index would be comprehensive and cover all property developments in the emirate, he added.
Established in July 2007 by a royal decree, RERA is part of the Dubai Land Department, which regulates, manages and licenses various real estate-related activities in Dubai.
"We want to see the market where the rights of all parties will be protected, and in this regard the agency needs cooperation of all stakeholders," he told the paper.
Around 420 developers and 8,000 brokers are registered with RERA.
Quick Links(Residental)
Filter by address:
Comments 1-9 of 9
Posted by KM,Dubai, Dubai, United Arab Emirates on 11 October 2009 at 15:51 UAE time
Where is the rental index after Apr 09. The rents have considerably come down in all areas as many flats are empty in Dubai after recession. There are no takers. Still RERA wants landlords to enjoy unjustified increase of rents in 2009 by not publishing the current rental Index. This is not fair!!!
RERA must immediately release the new rental index for fair and transparent present rents in Dubai.
Posted by trudy_mettler@yahoo.com, Dubai, United Arab Emirates on 7 October 2009 at 21:25 UAE time
So many people complain about RERA. All these people have right. Also Maheen, also our flat went up by more than 20%. They do not have money anymore. So where they will get it is the tenant.
But all you people why always writing about RERA, we can not do anything. Also if we complain about it. They have there plan and they (Landlords) need money. That is all. They do not care if you can affort it or not. We do not have to say anything. Do not lose your time with writing.
Posted by naive, Dubai, UAE on 7 October 2009 at 14:09 UAE time
Rera job is to regulate market when upward and that also in realistic manner not the way done with rent index which is causing problem to lot of people in this downturn time
It will be better for economy and market that RERA does not interfere in this crisis time just to keep prices artificially high
Posted by Kumar A, dubai, united arab emirates on 6 October 2009 at 23:34 UAE time
RERA is bent on doing something for someone. But like its rent index ( The benchmark for failed indexes) this is not going to take off. That is why only 5 persons commented on this article which was put on the website more than 12 hours ago. The article and the contents dont mean anything to a majority.
Also the promised rent index in sep 09 has still not been seen by anyone and was full of ERRORs the first time. instead of correcting the past errors why create a new index with no statistics to back it up other than the inflated values of 2008.
Posted by Maheen, Dubai, United Arab Emirates on 6 October 2009 at 17:48 UAE time
Due to the RERA 2008 index - inspite of a dip in most of the rents throughout the City - Nakheel decided to adhere to the Rent Index and raised our rents UP by more than 23% - their service levels have dipped more than 50% but guess that doesn't matter. Am wondering what the next increase will be??????
Posted by charles, dubai, uae on 6 October 2009 at 15:26 UAE time
sadly the RERA rent index meant nothing. Landlords added on service charges to get round the lack of any increase they could make. They just ignored it. Now we have an index for minimum prices for someone to buy? Of course that will be ignored as well unless it is to get "charges" from people based on some strange level DEWA etc.
Posted by Mogy, Dubai on 6 October 2009 at 15:15 UAE time
How can RERA be called a Watchdog when they decide the rules of Real Estate in the Emirate of Dubai. They are either a regulator or watchdog but they cannot be both. What they should be doing and the purpose of what I believe their creation was for has become clouded. For example you have the rule where Rera has to sign off on all Service charges in a resdiential, multi owned complex but then what is the legal purpose of the Owners Association. TheOA mandate is to appoint an owners association manager and on behalf of all the owners work with that manager to determine the costs for running and maintaining said development by ensuring cometitve prices, benchmarking and constant review. If Rera have to approve the service charges in my humble opinion it makes a mockery of the point of an owners association. In many other developed countries there are watchdog organisations for Real Estate but they only give their opinion or invole the proper authorities when necessary or offer assistance to the legislator when asked to do so, they do not dictate the rules nor tell people what rents should be or purchase prices should be. At the end of the day a villa or apartment is only worth what a tenant/purchaser is willing to pay for it. It is not worth what any organisation/group say it is. Let the market finds its own levels and stop trying to move it in a particular direction.
Posted by Philip, Dubai on 6 October 2009 at 15:09 UAE time
Just another way to try and artificially hold the value of property up.
As the practice that seems to becoming the norm here is , if we say it often enough people will believe it. No economic crisis here, We are in recovery etc...
Posted by Dod, Dubai on 6 October 2009 at 14:11 UAE time
This would be a difficult task and the prices would always be out of date (just like the rental index), and subjective.
The article does not help us understand exactly what the point of trying to "benchmark property values" would be. What would the values be used for? Buyers and sellers need to make up their own minds on what prices they will accept