Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum on Wednesday issued a decree setting the maximum allowed increase in property rents in the emirate in 2010.
The decree approves the most recent Real Estate Regulatory Authority’s (RERA) price index which will be followed as the reference for setting any increase in rent values next year.
The new decree prevents any increase in rent values as long as the property concerned is less than 25 percent below the RERA rent guide, news agency WAM reported.
The maximum allowed rental increases will be as follows:
5 percent increase if the rent value is 26-35 percent less than the RERA rent guide.
10 percent increase if the rent value is 36-45 percent less.
15 percent increase if the rent value is 46-55 percent less.
20 percent increase if the rent value is 55 percent less than the RERA rent guide.
The decree comes as part of Sheikh Mohammed’s efforts to stabilise Dubai’s property market which has been rocked by the impact of the global economic crisis.
The decree goes into immediate effect and will be published in the official gazette.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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