Tuesday, March 10, 2009

Revised rentals applicable for The Gardens from June '09

Beginning 1st June '09, the rents for tenants in The Gardens will be revised inline with the guidelines issued by RERA (Real Estate Regulatory Authority), announced master-developer Nakheel.

In its circular to the tenants, Nakheel confirmed a rental revision, affecting all contracts from 1st June, as per the rules and regulations announced by concerned authorities in Dubai.

The circular also stated that each tenant would be advised individual about the new rents shortly. A Nakheel spokesperson, who spoke to the media, said that The Gardens is one of the most sought-after rental communities in Dubai.

RERA's residential rental index, compiled during the second half of last year, indicated a rent of Dh.130,000-140,000 for a triple bedroom, Dh.100,000-115,000 for doubled bedroom and Dh.90,000-95,000 for single bedroom apartments in The Gardens.

The new decree by RERA, being applicable to both residential and non-residential properties, curbs rental increases this year for tenants who intend to renew rental contracts signed last year, provided, the rental value in 2008, was equivalent to or less than 25 percent maximum than the average rents in the RERA index. Also, a landlord can increase rent upto 20 percent, the decree stipulates.

RERA is currently working on a rental index which has more realistic values, considering the decline rentals in the emirate. The revised index will be released in April.

As for the The Gardens, Nakheel does not offer the option for freehold ownership for properties in the community. The Gardens signifies the commitment by Nakheel to an affordable family living, combined with quality lifestyle and amenities.

Located in proximity to the Ibn Battuta Mall, The Gardens development comprises 129 low-rise buildings with single, double and triple bedroom apartments and accommodated 10,000 residents and is 100 percent let.

The property prices and rentals in Dubai are likely to decline across most sectors this year, before attaining stability by 2010. Dubai may be handicapped by considerable levels of new supplies and the market is unlikely to experience any sustained growth in prices and rentals until 2011, reported a leading property consulting firm.

1 comment:

marhabahome said...

Real Estate Regulatory Authority has taken a correct decision.Rents should be brought to realistic values.