Autonomy

"Once the index is launched those whose rent contract expires will no longer pay the old rent but will move to the new one based on the index. The index will also be used for rent dispute cases between landlords and tenants – the authorities will refer to it before taking any decisions."

If I read the article right - it will mean that rents are expected to average out across the market. If the rent cap is scrapped it will be carnage for many and only good for the landlords - I can't see any benefit short term on this....

http://www.business24-7.ae/Articles/...1f299cd96.aspx

Eeyore

It's a difficult one. On one hand, the government is under constant pressure to keep rent prices under control so that businesses can keep their staff costs under control, but on the other hand it's trying to be seen as a friend to the free market (okay, so there's no real free market in Dubai, but you know what I mean).

Depending on how this all pans out it *could* be good for some tenants - those that are paying over the odds, anyway - but if I lived in the Gardens, I'd be very worried about what might happen next year. If the idea is that Nakheel wants to get Gardens rents up to the average for the area, they'll be imposing increases of around 400%.

From what I've heard, though, the rent cap isn't going away, and will probably drop to 3% for 2009 - except for people who are paying rents which are significantly adrift from what the index says they should be paying.

IndieG

Read the article carefully - the index provides indicative figures only and are not legally binding whereas the rent caps are.

EDIT: Depending on which news article you read, RERA as expected are contradicting themselves. I read another article saying that the old rents no longer apply and tenancts will have to pay rent per index

I'm sure my greedy landlord is already plotting and planning

NorthernLad

What is the fascination with having loads of bogs in places here?

"The third factor applies specifically to the unit – the view, the number of toilets and whether there are built-in wardrobes, a maid's room, a closed kitchen, a storeroom and balconies.

NorthernLad

From what I read into it, the landlords are not obliged to follow this:

"The property index is not a law or obligation – landlords will not be forced to follow it. It is an indicator that shows the fair rent rate for each unit in each building or compound. It will be a clear guide to the real rent rates in the market in different districts taking into account the facilities in the unit and the surrounding area."

But the tenants will have to:

"Once the index is launched those whose rent contract expires will no longer pay the old rent but will move to the new one based on the index. The index will also be used for rent dispute cases between landlords and tenants – the authorities will refer to it before taking any decisions."

This could be interesting. Good thing the new airport terminal is nearly ready, I can see a lot of 1-way flights out of here.

jvr20

i suppose it's as good an indicator as any as to the luxury factor of the unit... after all it wasn't (relatively) that long ago that England had the window tax.

IndieG

Let's see whether the index will override the rent caps.I expect a lot of confusion come Jan 2009.

Confucius

On one line, they're saying "The property index is not a law or obligation – landlords will not be forced to follow it. It is an indicator that shows the fair rent rate for each unit in each building or compound.",
and on another line they're saying "Once the index is launched those whose rent contract expires will no longer pay the old rent but will move to the new one based on the index."
So which one is it???

Autonomy

Uma said it best.... however... BINGO!

IndieG

Who's Uma??

Autonomy

Uma Thurman.... http://www.youtube.com/watch?v=zoUEMZnibS8

I just meant to say that I agreed with Confi and the obvious contradictions...

anna_bozhko

Thanks, very helpful

admon

until the rent law is actually issued for 2009 and implemented, its all a lot of hot air...

I mean look at ... VAT -defintely first quarter 2009... er no, now its 2010 and will probably get put back even further when the gulf single currency doesnt make the 2010 deadline.

then the 'new' visas, it was supposed to be all change to stop visa runs, but again, er no...