Poll shows 63% think RERA index 'unhelpful'

Just one in 10 think rental indexes are a good idea for tenants and landlords.
Poll shows 63% think RERA index 'unhelpful'
By Joanna Hartley
Sat 09 May 2009 03:59 PM

Almost two thirds of those responding to an online poll have warned that official rental indexes could prevent tenants from being able to secure the cheapest deals.The poll was carried out by Arabian Business on the back of a new rental index for Dubai - drawn up by the Real Estate Regulatory Authority (RERA) and publlished at the end of April.

The index indicates that rents have plummeted by up to 50 percent in some areas, compared with a similar index issued in January.

However, of those responding to the poll 63 percent thought they were actually more unhelpful than helpful, as they curtailed a completely free market, and prevented individuals from negotiating even better rents.

Another 16 percent thought they did “not really” help as the really good deals still involved a one cheque payment, which was difficult to meet under current banking restrictions on lending.

Meanwhile, 11 percent thought such indexes were “fairly” helpful, as they gave tenants an idea of the price they should be bargaining for.

But, just 10 percent thought they were a good idea because they made it crystal clear to tenants and landlords, how much should be paid in given locations.

The new index appears in the form a 'Rental Increase Calculator' on Dubai property watchdog RERA’s website allowing landlords to set rents in Dubai.

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