Rental index for Dubai educational institutions likely

An agreement to this effect has been signed between the RERA (Real Estate Regulatory Agency) and KHDA (Knowledge and Human Development Authority).

The deal aims to develop a single index that determines the appropriate rent levels for different areas. A unified index will be developed that establishes appropriate levels of rent for various areas, with a view to achieving stability in the rental market for public, private and educational buildings.

Rents for adjacent schools can vary considerably, with the private schools having a knock-on effect on the level of tuition fee. The new scheme involves development of long-term rental contracts meant to smooth out inconsistencies and disparities.

The Chairman of the Board of Directors and Director General of KHDA, Dr. Abdullah Al Karam, said that the scheme aims to set a standard for prices of educational services, attracting investment into Dubai education center and in enhancing quality in all areas within schools.

Sultan Bin Butti Bin Mejren, the Director General of RERA, part of Dubai Land Department, said that this agreement, with the KHDA, aims to enhance the role of Land Department in registration of educational facilities, including properties and rent contracts, by bringing in more transparency in defining rent index for rents in those facilities.

The agreement is inline with Law No.26 of 2007, which requires that all rental contracts be registered with RERA. It calls for sharing of records of more than 500 educational facilities.

The deal aims to create an electronic system, linking the entities to encourage co-operation for offering preliminary approvals for educational facilities.

Posted on 10/6/2009

Recent Articles