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60% say RERA should scrap its rental index
More than 60 percent of people think that Dubai’s Real Estate Regulatory Authority (RERA) should scrap its rental index, according to the latest Arabian Business poll.
Some 60.3 percent of respondents said the real estate watchdog always got rental price wrong, so should scrap the index because it was misleading.
A further 11.7 percent of people said the index was not necessary because the city’s property market dictated itself.
While 14.9 percent said RERA should continue to release its rental index if it got the prices right, because some properties were priced too high.
Only 13.1 percent said the index was a valuable service for landlords and tenants.
Last week RERA released its new rental index for apartments and villas in Dubai. Rental values for apartments were lower in the October index compared to the previous index published in April. However, many examples in the latest index indicated that villa rents had held their price or even risen.
One reader, who posted a comment on Arabian Business, wrote: “I do not believe the data by RERA – the rental rates they quote are extremely bloated.
“This agency is just an organisation for real estate owners. It is not for the consumer! Check Dubizzle for real rates!”
Dubizzle, the classified website, is the first point of call for many tenants looking to rent a property, and most, if not all, property agents advertise their lettings on its pages.
Often, the prices advertised here are less than those quoted by the RERA index.
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Comments 1-9 of 9
Posted by Petrometro, London, UK on 2 November 2009 at 14:32 UAE time
Riaz, with the greatest respect, if you have been at a RERA court you would know that the tenant is the one being protected, not the landlord. My friend owns an apartment and he was taken to RERA because the tenants he had couldn't stomach all their friends negotiating lower rents with landlords whilst he was paying a higher rent for the next 10 months. He Lost. This is a very rare situation and luckily for my friend who like me lives in the UK we have a very savvy representative in UAE who defended us. By and large though tenants get the benefit of the doubt not the landlords, until it is proved that the landlords situation is proved otherwise. A developer is subject to another court, not RERA
Posted by Riaz, Sharjah, UAE on 2 November 2009 at 13:59 UAE time
RERA is for protecting the developer-
It doen't make any sense in RERA index!!
Hand in glove-
Posted by Petrometro, London, UK on 1 November 2009 at 23:52 UAE time
Dubai is a market economy not some soviet apparatchik state. Demand and supply in turn dictate rates, not "spurious" indexes dreamed up by bureaucrats in an office. I have a friend who has let 4 villas in arabian ranches at 30% above the high in the endex. Why? The tenants liked the property so much they were preparaed to pay a premium. If your property is taken care of, is offered to the market in best condition with landscaped gardens and so on, there will always be a premium to be paid. There is nothing, as a landlord, against the law to say that you have to accept an offer within the index. If it were the case then why bother viewing apartments and villas in the first place!!
Posted by GMX, DXB, UAE on 29 October 2009 at 11:58 UAE time
I agree with MM. All the parties making these rulres and regulations have thier own vested interest .They are all benfitting from the laws in one way or the other. The rent index has just encouraged greedy building owners to increase the rents in downtown Dubai- where the majority of the middle class families live. At this moment of time when we are hit by the recessions may have both husbands and wifes working, and sharing a flat with another family because of the redicolous rents these building owners and Real Estate Companies charge.The culprit in this business is the real estate companies who just hike the rent for no reasons. Often you would find that taking renting an apartment from the direct owner is cheaper than getting it from the Real Estate Company. Many tenants living in Ghusiais and Al Nadaare facing another type of problem, afetr the first year of occupancy when u want to renew the falt real estate comapnies increase the rent, they say take it or leave it. The ploy is to leave the flat and take another falt of a cheaper rent reason the realestate get commission on new Tenancy contract Nothing on renewal. Just Unreal
Posted by Masarrat Shaikh, Abu Dhabi, UAE on 29 October 2009 at 09:22 UAE time
I cannot believe what is wrong with the people of UAE. While I realize that it is a positive move on behalf of the UAE government towards appointing a federal body (such as RERA) for the regulation of real estate prices, I still believe that RERA needs to review its listed rental prices for apartments and villas so as to make these more realistic with the current market situation.
Come on, RERA how big is the UAE rental price Index that you cannot get the rental and sale prices of apartments and villas accurate enough? Build some confidence in the UAE public so that they start believing the index!
Posted by Dod, Dubai on 28 October 2009 at 16:53 UAE time
MM, The fact that the index is hard to get right is one reason why they should not attempt it. They have plenty of other issues to be acting on.
Anyone interested in buying or selling can easily find out the real price by a few inquiries.
Why is it that the prices in the index are always erring on the high side (nothing lower than reality)? That raises suspicion and distrust of the index.
Posted by Golden Dragon, Sharjah, UAE on 28 October 2009 at 15:06 UAE time
I'm sure that MM is either a property owner in UAE or working for RERA...."Agree, the prices are a bit higher than market value, but give them a breathing space, they are slowly bringing it down"....FYI Rera need not bring the prices down..they have to just report exactly what the current market prices are.....Even that they cant do properly...
Better NOT to give any information than to give FALSE information.
Posted by Raj, Dubai, UAE on 28 October 2009 at 14:49 UAE time
Finally, lets get this Index out of the way. Its just too dumb. Since RERA has come into picture, problems have started emerging.
Posted by MM, Dubai, United Arab Emirates on 28 October 2009 at 14:10 UAE time
What the hell is wrong with people? First they scream and shout over RERA for not acting, and now when they do something, people want them to scrap it? Rera should scrap these comments of people. Agree, the prices are a bit higher than market value, but give them a breathing space, they are slowly bringing it down. Nothing can or should be done overnight. For once, for the love of God, learn to appreciate.