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Next RERA rental index update planned for Sept
The next Dubai rental index update is being planned for September, it emerged on Wednesday.
Marwan Bin Galita, chief executive of the Real Estate Regulatory Authority (RERA), said it would share its extensive database with Ajman's Real Estate Regulatory Agency (Arra).
"It will unify with the federal laws if we share the same database. It will unify the database for developers and agents. Agents in Ajman wishing to market in Dubai must be registered with both (Rera and Arra)," Bin Galita said in comments published in UAE daily Gulf News.
Talking about the latest index, he added: "It's good. It is more trusted. If a dispute, from January, comes to the Rent Committee it will be based on the existing index, not the previous one. Landlords and tenants, especially landlords, should look at the situation now."
Contracts signed from January to March and also previous contracts have all been taken into account, he added.
Arabian Business exclusively revealed last week that a calculator on RERA's website was the basis of its new updated index for Dubai rents.
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Posted by MK, Dubai, United Arab Emirates on 14 May 2009 at 09:41 UAE time
It is not clear for the old tenants whether the tanants who have renewed their contracts last year with 5% increase as per rent cap, will they still have to pay again this year an increased amount as per the rental index? This is not fair....if it is like this.Can anyone throw light on this?
Also, it is still not clear the rental index is based upon registration by how many landlords and how many apartments? Are landlords registring all the contracts in a bulding with RERA or just a few apartments whose rents are high are being registered. RERA must ensure 100 % regisrtaion of contract for all apartments in Dubai which is possible. Then the average will give a fair idea of how much is the rental index in an area. Currently it seems that the picture is not genuine.
Posted by Topi, Dubai, UAE on 14 May 2009 at 09:08 UAE time
Yeah, RERA does not have any other work because of real estate market crash.
This is why they just keep publishing rental indexes now and then to show people that they are worried about Dubai residents....when they are not...Its timepass.
Posted by Dude, Dubai, United Arab Emirates on 14 May 2009 at 04:51 UAE time
Index are historical information that is irrelevant to what is really going on in the market, that is what all we know about this science of statistics and surveys. In addition to this scientific fact, RERA index is really based on outdated data that is has no relation or little to the reality.
Now waiting till September won't benefit because we will not expect anything different because it is clear for every one that this index is used as a basis to regulate, and not to indicate, rents above actual levels in an attempt to stop collapse in the rent sector and avoid making thing reaching to the real worst situation and project an image which is not true.
This index already lost great deal of credibility and will definitely lose the remaining part if its not released on monthly basis especially June and the rest of the expected very slow summer is going to have a sharp negative impact on the rents and population living in the city.
Posted by PRITAM, DUBAI, UAE on 13 May 2009 at 19:26 UAE time
IS THIS RENTAL INDEX FOR NEW TENANTS OR ALSO FOR THE OLD TENANTS BECAUSE ON RERA OFFICIAL SITE IN THE RENTAL PROCESS SECTION OF RENTALS IT SAYS QUOTE" From January 1st, 2008 rental cap has been set at 5%. This means that Landlords may not increase the rent higher than 5% of the existing rental agreement for a period of 2 full years starting form the period of the commencement of the lease."
But the Landlords follow the Rental Calculator at the time of Contract renewal which increases the rent by almost 10-15 %.
So,would like some clarification on this.if somebody can help...
. "
Posted by Elie on 13 May 2009 at 16:58 UAE time
any.. the Rera index doesn't really make an difference.. because it doesn't reflect the reality in the market....
so whether its Sept 09 or Sept 2010.... no difference...