Property in Dubai
RERA unaware about probable introduction of new rent cap
The top official of RERA (Real Estate Regulatory Authority), the body responsible for regulating the real estate market, said it has no clue about the possible introduction of new rent cap in the emirate.
The Director General of RERA (Real Estate Regulatory Authority), Marwan Bin Galita, said that no date has been set for re-introduction of the annual rent cap, which earlier stood at five percent.
Without any rules limiting rent rates, landlords of few buildings are said to have increased rents to almost double the earlier rates.
According to Secretary General of Dubai Rent Committee, Mohammed Al Shaikh, about 15 to 20 complaints are being received per day from tenants who in dispute with landlords.
He said that unless the rent cap is announced, more such cases may be expected. The previous cap of five percent has expired and there has been no rule to replace it.
Talks are also on that once RERA announces its new rental index, an annual rent cap may no longer be necessary. RERA is in the process of publishing a list of average rents in various areas of Dubai, once 60 percent of tenancy contracts get registered in its new Ejari website.
Posted on 9/1/2009