Dubai property watchdog Rera is poised to roll out its eagerly anticipated rental index, it was reported on Tuesday.
Rera’s (The Real Estate Regulatory Agency) index will calculate rental prices for a range of properties across the city to control spiraling rents, the main driver of inflation in the UAE.
“The rental index for residential and commercial units is ready and will be launched soon. The regulations for its implementation have been finalised but are awaiting approval from the Ruler's Court,” said Mohammed Khalifa bin Hammad, director of Rera's real estate relation regulatory, in comments published by Emirates Business.
High rents have long been the bugbear of many residents in Dubai. Experts say the index will give greater transparency to the rental system, helping stamp out cases where tenants are over-charged.
It is understood the index will come into effect at the end of next week, setting minimum and maximum rents landlords can charge across various developments in Dubai.
Not only will the index help iron out disputes between landlord and tenant, it will be compulsory to adhere to for all those wishing to let properties.
In 2008 the rental cap in Dubai -set by the government- was 5 percent, which has remained unchanged.
Throughout Dubai’s six year real estate boom rental prices soared as supply struggled to keep pace with rampant demand.
Now with property values are falling and a global recession looming landlords are piling into the rental market, pushing rental prices down.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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