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RERA INDEX
Posted by s. s.mohamed, dubai, U.A.E. on 14 November 2009 at 13:03 UAE time
RERA INDEX HAVE NOT CONSIDERED THE BUILDING AGE INTO CONSIDERATION .IS IT POSSIBLE THAT FOR 30 YEARS BUILDING OLD THE SAME INDEX RENT TO BE APPLIED AS PER THE 1980 BUILDING RENT?

Rental Index
Posted by P.Joseph Neville Fernando, Deira, UAE on 7 November 2009 at 13:03 UAE time

Appreciate your regular update of rents applicable for all type of properties in Dubai as per current market conditions so that this will help to keep public confidence about your authority. However rent calaulator reflects only increase side & it does not reflect the decrease side.Under current market conditions rents are now in downward trend. As per RERA index if current rent falls below 25% or less rent increase does not applicable.Example, particular area rent slab is between 25000-30000 and suppose tentant pays above 30000, RERA does not force landload to reduce the rent for that tenant and still has to pay same rent. This is very unfair for tenant side. My suggestion is same like increase, decrease also should reflect in RERA calculator in percentage wise so that same to be followed by land lord when renewing the contact. Then RERA is reasonable for both landloard and tenant and there is no bias this will help to reduce disputes and increase public confidence.

RERA is not interested in addressing the problem
Posted by MD, Dubai on 23 October 2009 at 18:02 UAE time

Folks, why are you surprised at the new rental index. Judging by the past actions of RERA, it is quite obvious that they are here to only protect the interests of the developers and landlords. Perhaps they have forgotten that they are regulators so that means they have to ensure that interests of tenants and investors too have to be protected. They couldn't be bothered that by continuing with such performance they are only harming the image and reputation of Dubai locally and globally.

inflated rents
Posted by anon on 23 October 2009 at 16:26 UAE time

well we rented a 4 bed in the marina for 175k in jun 09. same apts in my bldg are currently quoting anywhere between 130 - 150k. the lowest 4 bed in the marina is listed at 220k by rera. draw ur own conclusions....

Still is not Accurate
Posted by The Don, Dubai, United Arab Emirates on 23 October 2009 at 11:44 UAE time

I rented 2 months ago 3 bedrooms apartment in Bersha 1 for AED 90000, the lowest average is 100,000... so it is higher by 10%

Same building, highest rent for 2 bedrooms is 60,000 while the index is quoting 60,000 for the lowest average. Lowest rent is 45,000. So it is inflated by 25%

1 bedrooms are facing slow in demand and significant drop in rents... go to green community you and go to any building... many apartments are vacant and rents are dead cheap.

Joke Index
Posted by Punky Brewster, Dubai on 23 October 2009 at 11:39 UAE time

I think RERA is no longer an authority to decide HOW much the rent should be, considering they are supposed to be helping the Tenants as well! Think about it - RERA is the govt authority to arbitrate in cases, NOT Price the properties AND arbitrate as well. No wonder the Landlords can get away with murder. Besides, MY best guess - these INFLATED rents are for a reason, which is the 5% tax the DXB Municipality gets. I'm sure all the leases have to go through RERA for approval, and therefore, they have priced the properties so as to be showing a SURPLUS revenues in Municipal Tax. Anywhere in the world, since DXB has a HABIT of comparing themselves to Paris or Singapore or London, there are NO govt authorities that evaluates the prices of finished properties. ONLY in DXB....

Is this for real???
Posted by Ajay on 23 October 2009 at 10:42 UAE time

These rents are higher than the market rates... in Al Hamriya, studios cost 40K... here the minimum is 50k as per Rera.... The good one BHKs cost around 55K, the rera index shows minimum 60k... looks like RERA's sole pupose is to help the landlords and not the tenants...

Rename the list to 'The Joke Index'
Posted by Prakash P P, Dubai on 23 October 2009 at 09:37 UAE time

As usual, RERA has no idea what the real market values are, or they are intentionally trying to keep the rents high. How can the rents be flat across the board for any area, the age of the buildings, the size of the apartments, the parking spaces provided along with the facilities that are provided have to be considered. Brand new buildings are offering cheaper rents as they need the rent out the apartments asap. The landlords of buildings that are already occupied, don't mind keeping a few apartments unoccupied because if they offer them at lower pricers, all the other tenants would ask for a reduction as well. RERA has to go back to the drawing board & come up with something that is fair & Logical. So far I have seen nothing responsible or practical come out of RERA, it seems the decision makers are living in a dream world somewhere.

Too high
Posted by Fad on 23 October 2009 at 09:30 UAE time

i think what they are trying to do is to boost the market, The numbers mentioned are unrealistic. I do not think that they are seeing what is happening to market. The prices are much higher than reality. This is all a joke

Mirdiff
Posted by Mirdiff Mary, Dubai on 22 October 2009 at 19:02 UAE time

The Mirdiff prices are not the prices at Uptown Mirdiff. Uptown Mirdiff is still higher by 10% to 20% than this index. And since I live at Uptown Mirdiff does this index mean that when it comes time for my renewal that my landlord needs to reduce by 2 bedroom which is at 120K down to 100K?