No changes to April's rental index - RERA official

New index may not tackle issue of being based on 2008 boom figures - report.
No changes to April's rental index - RERA official
By Andy Sambidge
Tue 31 Mar 2009 08:12 AM

An updated Dubai rental index, due out in April, may not be based on new rental values in the emirate after all, an official at the Real Estate Regulatory Authority (RERA) has said.

In February, RERA indicated that the index would be updated and re-released in April following concerns that it was based on unrealistic rental values taken during the boom of summer 2008.

But according to Karim Awwad, an official at the authority, RERA may just be filling in the averages for the areas and bands that were not covered by the original chart rather than changing any of the data.

"We are not making any changes to the existing figures, we are just going to be updating the areas that were not mentioned in the last index. We will be conducting a new survey in summer of this year," he said in comments published by AME Info on Tuesday.

The index aims to give tenants and landlords in Dubai a guide to what rent levels should be throughout the emirate.

In February, Marwan bin Ghalita, chief executive of RERA, said that a new index was due to be published in two to three months.

The move came as rents in the city fell dramatically from the heights of mid-2008, the figures from which time the rental index is based.

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