Monday, March 02, 2009

New rental index likely in April: RERA

Dubai's RERA (Real Estate Regulatory Authority) will announce its new rental index in April, aiming to bring out a more realistic market.

This decision by RERA follows the huge protests over rental values that were included in the original index published by the Authority last month.

The index is more like a guide, intended to help landlords and tenants in Dubai, with approximate rent levels based on various areas in Dubai. The index is actually scheduled to be republished every six months.

The Chief Executive of RERA, Marwan Bin Galita, said that the rents in the emirate have already begun to plunge, and depending on the location, rents could drop from 10 or 20 percent to nearly 50 percent this year, based on the location.

However, owing to the global economic slump, nearly 20 percent of the 31,000 or more residential units may not come on stream this year. A 40 percent decrease in the total number of units projected for 2010, is also likely.

The first rental index by RERA was released in January this year, which caused resentment among tenants, who felt that the rates quoted were based on last year's rents, when rentals were at their peak, before the onset of financial crisis.

2 comments:

dubai property said...

New rental index is need of the time.I welcome the measure.But it should not affect the intrest of the teneants.

Anonymous said...

It is now reaching the end of April with no sign of the new index. Landlords continue to prosper and Tenants suffer.