Saturday, February 07, 2009

Rental Index will be updated to reflect current market conditions

The new rental index is likely to be updated in three months time, in accordance with the current market conditions, revealed a top official in Dubai's RERA (Real Estate Regulatory Authority).

The index, which is more of a guide to landlords and tenants in Dubai, was scheduled to be re-published every six months.

The Chief Executive of RERA, Marwan bin Ghalita, who spoke to the media on Thursday, mentioned that the new index is likely to be published in two to three months time. This initiative comes, when rents in the city have begun to fall dramatically from its peak during mid-2008. The Dubai rental index which has been released now is based on the figures during that period.

Ghalita said that despite the drop in rents, Dubai still offers good rental yields of up to 10% of the value of property, in comparison to 2-3 percent in other countries.

1 comment:

WebJunky said...

the interesting thing to note here is that will it come down enough to boost demand once again? or will it not affect the real estate rental market at all? my guess is the later. you need people and jobs to stabilize real estate. someone has to pay the rents. the fear is rents will go so far below the norm that landlords will have a shortage in spread (mortgages vs rents colleected)