The Dubai Land Department (DLD) has announced that its rental index for residential, commercial and industrial properties has been updated for 2018.
The new rental index includes all areas of Dubai, as well as all types of property and indexes for new projects. For the first time, a land rent index has been included for land with annually renewable lease contracts.
“The rental index is based on a calculation of the increase in rental values, reflecting average rents in different areas, the rental value of registered leases, and the properties offered for leasing,” said Mohammed Yahya, Deputy Executive Director of the Rental Affairs Sector at DLD.
“Updating the rental index once a year helps us to maintain transparency in rental transactions for the various properties available for leasing throughout the Emirate. This limits conflict between the parties involved, especially as it is a reference that everyone can rely on.”
The rent index is generally updated once a year and made available in late September on DLD’s website, giving owners three months to notify tenants of updated lease values for the following year.
The index is based on Decree No. 43 of 2013, which set an increase of 10 percent of the rental value if the rental fee is between 21 and 30 percent of averages wages, 15 percent if the rental fee is between 31 percent and 40 percent less than the average wage, and a 20 percent increase if the rental fee is 40 percent less than the average wage.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.