DUBAI: In its bid to control soaring rents, the real estate regulatory authority here has announced a residential and commercial price index,
designed to fix average rental rates across different zones in the emirate.
The index announced on Thursday by Dubai's Real Estate Regularity Authority (RERA), will fix average rental rates for properties on the basis of road conditions, public parking, location, air conditioning, view and age of the building.
"The government has already interfered three times to impose rental caps and now there is hope that the rental index will remove this need," RERA said in a statement.
Rents of properties like apartments and villas will depend on the size of the building but prices for other residential properties, however, are not clear.
Rates of commercial properties will be fixed on whether the building is on a main road, sub-street or an inside building.
The authority will constantly update the index to match market factors and changes. This will stop property owners from raising the rents too high in the market.
This step is being viewed here as a major relief to tenants who have been struggling to survive amidst spiraling rents.
DUBAI: In its bid to control soaring rents, the real estate regulatory authority here has announced a residential and commercial price index, designed to fix average rental rates across different zones in the emirate.
The index announced on Thursday by Dubai's Real Estate Regularity Authority (RERA), will fix average rental rates for properties on the basis of road conditions, public parking, location, air conditioning, view and age of the building.
"The government has already interfered three times to impose rental caps and now there is hope that the rental index will remove this need," RERA said in a statement.
Rents of properties like apartments and villas will depend on the size of the building but prices for other residential properties, however, are not clear.
Rates of commercial properties will be fixed on whether the building is on a main road, sub-street or an inside building.
The authority will constantly update the index to match market factors and changes. This will stop property owners from raising the rents too high in the market.
This step is being viewed here as a major relief to tenants who have been struggling to survive amidst spiraling rents.
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1 comment:
Here's the Gulf News story :).
As usual, different sources get conflicting comments and then interpret them in different ways. It sounds like RERA is continuing to operate as though 5% cap is still in place until told otherwise. The property index is due in about 2 weeks. Here's more comments about the Dubai rent index and rent cap
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