Dubai RERA's rental index ready
Thursday, January 08, 2009
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Dubai's Real Estate Regulatory Agency (RERA) has completed the much-awaited rental index and is awaiting the approval of the Rulers Court. A senior official of RERA has revealed that the index would be rolled out soon after obtaining approval.
The Director of RERA, Mohammed Khalifa bin Hammad, said that the rental index for commercial and residential units would soon be launched. The regulation for its execution has been already finalized and is awaiting approval of Rulers Court. Once approved, the index will be published in newspapers.
RERA revealed that it is not mandatory for landlords to abide by the rental index, although, a range would be set for residential and commercial units which the people can use to refer for comparing rents in various areas of Dubai. This would serve as a reference point during a dispute between tenant and landlord.
During a dispute, Dubai Municipality or any such concerned authority will have to consult the index before taking any decision. The index would form a benchmark in solving rental disputes, Hammad explained.
RERA has been involved in the index compilation work for the past six months. It has now completed updation until the fourth quarter of 2008.
The current rent cap for Dubai is five percent as of 2008, and the government has not amended the cap ever-since.
The Rental Index would also be a base to calculate rents for the authorities and people concerned, said Andrew Chambers, Managing Director, Asteco.
In mature markets usually a broad range would be available and so introduction of index is a good step for maturity, Chambers said.
View RERA Rental Index 2009
The Director of RERA, Mohammed Khalifa bin Hammad, said that the rental index for commercial and residential units would soon be launched. The regulation for its execution has been already finalized and is awaiting approval of Rulers Court. Once approved, the index will be published in newspapers.
RERA revealed that it is not mandatory for landlords to abide by the rental index, although, a range would be set for residential and commercial units which the people can use to refer for comparing rents in various areas of Dubai. This would serve as a reference point during a dispute between tenant and landlord.
During a dispute, Dubai Municipality or any such concerned authority will have to consult the index before taking any decision. The index would form a benchmark in solving rental disputes, Hammad explained.
RERA has been involved in the index compilation work for the past six months. It has now completed updation until the fourth quarter of 2008.
The current rent cap for Dubai is five percent as of 2008, and the government has not amended the cap ever-since.
The Rental Index would also be a base to calculate rents for the authorities and people concerned, said Andrew Chambers, Managing Director, Asteco.
In mature markets usually a broad range would be available and so introduction of index is a good step for maturity, Chambers said.
View RERA Rental Index 2009
Labels: Property Law, Rentals
2 Comments:
Where can we get the official Rental Index
commented by 
Marc Brandone, 12:06 PM
Marc Brandone, 12:06 PM
Please send us any link where to get information of the official Rental Index. So far I have read and search for it in the news through google and RERA website but nothing is there only news items.
