The controversial new rental index is set to be updated within three months to reflect the new market conditions, a top official has revealed.
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.
But in comments published in UAE daily The National on Thursday, Marwan bin Ghalita, chief executive of the Real Estate Regulatory Agency (RERA), Dubai’s property regulator, said that a new index was due to be published in two to three months.
The move comes as rents in the city have started to fall dramatically from the heights of mid-2008, the figures from which time the rental index is based.
Ghalita told the paper that despite the continuing drop in rents, Dubai still offered good rental returns of up to 10 per cent of the value of the property, compared to 2-3 per cent in other countries.
“There will be a correction, but it won’t go to 2 to 3 per cent,” he said.
Mr bin Ghalita was speaking at the unveiling of Dubai Land Department’s new corporate logo.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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