Wednesday, August 20, 2008

RERA's property index norms to be out early next year

Dubai's Real Estate Regulatory Authority (RERA), was due to release the norms for property index, by March this year, but, has now been postponed to early next year. RERA has decided to take its time to release what is expected to be, the most-awaited index in Dubai.

However, the Emirates Business has revealed some of the elements included in the index, which have been decided upon by RERA. A formula has been worked out by RERA for calculation of correct rent for a flat or villa, so as to bring out a reasonable reflection of rates in the neighbourhood.

The index will help landlords from exaggerating rents, said Mohammed bin Hamad, the Director of Rera Owners Relation Regulations Department. RERA has defined average annual rents for studios, single, double, and triple bedroom apartments and single and compound villas. The index is not legally binding, but, is more of an indicator.

The property index will establish rents, not only for a building, but, for each apartment within it. For instance, flats that face a road or are bigger than others will draw higher rents than those that face a backstreet, or are smaller in size or are situated at the corner of a building.

Also, all registrations and contracts for both residential and commercial units would be fed into RERA's database at the beginning of next year.

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