New real estate legislation in Abu Dhabi will make it easier for landords to evict low-paying tenants, it was reported on Thursday.
Under the new law which is to be implemented in the UAE capital in November, judges will settle rent disputes under the umbrella of the Ministry of Justice, UAE daily The National reported.
It said that while the five percent rent cap will remain, the legislation will allow landlords to evict tenants at the end of the lease period, after giving two months’ notice for residential property and three months for commercial property.
The new law removes the automatic right of tenants to renew leases for five years with a maximum five percent rent increase each year, the paper added.
While rents in Dubai have plummeted during the global economic crisis, they have remained at higher levels in Abu Dhabi because of a lack of accommodation on the market.
In a report published last month, CB Richard Ellis said residential rents in Abu Dhabi declined in the final quarter of 2009 but at a slower rate than at any point during the previous year.
One-bed apartments showed the strongest performance with just a four percent drop compared to the third quarter with a typical property fetching AED90-130,000 per year.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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