New rental index due out in April - RERA

UAE real estate watchdog's chief also predicts up to 50% fall in 2009 rents depending on location.
New rental index due out in April - RERA
By Andy Sambidge
Thu 26 Feb 2009 07:55 AM

Dubai's real estate regulator has announced it is due to publish a new rental index in April in a bid to help tenants and landlords.

Officials from the Real Estate Regulatory Authority (RERA) say it is aimed at making the market more realistic and follows a huge protest over the rental values included in the original index published last month.

The index, which gives tenants and landlords in Dubai a guide to what rent levels should be throughout Dubai should be, was originally scheduled to be republished every six months.

Marwan Bin Galita, chief executive of RERA, has predicted that rents in the emirate could fall by as much as 50 percent this year, depending on location.

"The rents have already begun to come down. Depending on the locations, this could range from 10, 20 to up to 50 per cent by the end of the year," he said in comments published by UAE daily Gulf News on Thursday.

However, due to slowdown and delay, around 20 per cent of the 31,000-plus residential units may not come online this year.

There is also a 40 per cent decrease in the 43,880 units forecast to come online in 2010.

The value of Dubai real estate transactions so far this year has fallen 45 percent to $4bn in the first two months of 2008, the land department said on Wednesday.

The first rental index was released in January and caused anger among tenants who said the rental rates quoted in it were based on last year's rents, before the financial crisis hit, when rents were at their highest.

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