Thursday, May 14, 2009

RERA confirms the new rental index

The rental calculator on Dubai's RERA (Real Estate Regulatory Authority) website is the new rental index, the RERA officials have confirmed.

During recent weeks, there has been lot of confusion about the rental index. The original rental index was released during end of 2008, but the rates were on the basis of mid-2008 rates, and hence were unrealistic.

A revised index was due during April-end, but the rental calculator was installed unannounced on RERA's website. However, the rental calculator is actually the new rental index.

Bin Galita said the new index is good and more trustable. Beginning January, all disputes coming in to the Rent Committee will be judged on the basis of the current index. Contracts signed from January to March and also previous contracts have all been taken into consideration. The calculator index has been compiled using data from the Ejari website, and after discussions with management companies, agents, and checking listings and site surveys.

The next index is expected to be released in September, after summer. RERA will also share its extensive database with Ajman's ARRA (Ajman Real Estate Regulatory Agency). The federal laws too will be unified, when the same database is shared. Agents in Ajman wishing to market in Dubai will be registered with both ARRA and RERA, Bin Galita said.

Previously agents in Dubai could market in Ajman without being registered there and vice versa. This practice may no-longer be permitted, as agents will have to register in both emirates if they want to market in both Dubai and Ajman.

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