More than two thirds of responders to an online poll believe that the recently revealed rental index from Dubai’s real estate agency is a total disaster, it was revealed on Saturday.
The Arabian Business survey found that 61 percent of people agreed that the minimum and maximum rental values outlined in the index would force many people out of their homes, because they would be faced with big rent increases.
Just 5 percent thought the values, which vary depending on which part of Dubai the property is situated, were “a pretty accurate” reflection of market prices, and would be helpful to tenants and landlords alike.
A further 19.5 percent thought the valuations were mostly inaccurate and would cause disputes between tenants and landlords.
And 14.5 percent backed the principal, but did not agree with the valuations set out by the Real Estate Regulatory Agency (RERA).
The poll follows warnings by real estate experts on Jan. 20 that thousands of tenants across Dubai could face steep rental price rises if landlords follwed the rental index.
This is despite a decree issued by Dubai’s ruler on Jan. 19 that froze rents on residential and commercial properties in the emirate for 2009 – banning landlords from hiking rents above 2008 prices.
However, the decree only covers tenants who renewed their contracts last year.
For those whose rents fall more than 25 percent below the guideline figure – likely to be long-term tenants – the freeze does not apply.
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