60% say RERA should scrap its rental index

Arabian Business poll finds dissatisfaction with Dubai's official rental guide.
60% say RERA should scrap its rental index
By Elsa Baxter
Wed 28 Oct 2009 11:19 AM

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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