admon

http://www.gulfnews.com/nation/Housi.../10276838.html

Its a decree, so it is law. As I warned it could happen a couple of weeks ago, the government are allowing landlords one last big hit, while everything forms an orderly queue to hit the fan..

So you are now liable for an increase that will take you up to 'market rent', if your 2008 rent contract is more than 25% below the 'market rent'.

For anyone in a property prior to 2008, this is likely to affect. For all those in property for a long while, it will hit really hard.

It would be nice if they actually issued what the 'market rent' for properties, which I am sure will probably take another few weeks..

Autonomy

the RERA rent index - I take it that it's not been published anywhere yet?

admon

the RERA rent index is taking on mythical proportions, ala bigfoot, UFO's, UAE royalty death rumours, etc..

twisty100

Is there not a 5% rent cap though..?

http://www.ameinfo.com/181100.html

I'm confused....

NorthernLad

I expect it will be a while before it surfaces....they will just blame it on the global financial crisis and put the publishing of the index on hold.

admon

the 5% rent cap stayed 'in the absence of any new announcement'.
Decree No.1 2009 is the new announcement that replaces the old rent cap.

But as there is still no RERA index published, it's all open to complete confusion (nothing new there then)

BurpusMe

In summary...
First announcement: There is no rent control in 2009
Second announcement: 2008 rent control policy carries over to 2009
Third announcement: Landlords can raise rent 0%, 5% or up to 25% depending on unknown factors
Fourth announcement: Any guesses?

My observation:
Dubai has a dwindling expat population
Jobs have never been less secure
All property companies are vulnerable right now
Newcomers aren't being offered massive packages anymore
The rental market has many new units available
Our buildings are decaying, and not as attractive as newer units
On a personal note - my building is emptying, as evidenced in our car park

For the remainder of 2009, the above factors will continue to worsen.

I fully expect my property manager to try it on and ask for an increase.
And I also expect them to back down when I decline, given their dependance on getting my commission. I'm actually contemplating asking for a decreased rental price & 12 cheques, in light of market conditions.

Landlords have had a good ride, but it can't continue forever.

Opponent

Isn't this the new rent index from RERA

http://www.rpdubai.ae/rpdubai/pdf/Re...x-30-12-08.xls

Autonomy

If I read this correct - they are smoking crack.

Average price in my area (Oud Metha) 200-300 dhs per square foot? So for a 1,000 sq ft apartment this would equate to 200 to 300,000 per year?

Can't be right. No way.

Meow

Has to be nonsense. It puts us at 250-350 per sq foot!

Ah - hang on - found another section that would still more than double our (admittedly cheap) rent. Glad we have just signed for a 5% increase.


-

typical

Huh? It has the following prices for Oud Metha:
Studio: 70-80k
1 Bed: 95-120k
2 Bed: 120-150k
3 Bed: 155-180k

... were 1 Beds on the Palm really going for 210k?

Autonomy

Oops - my mistake - you're right.

Still seems high. 120k per year approx = GBP1,818 per month. I was in a 2 bed in London with large roof terrace etc for 1,300....

Hmmm....

shiva

springs 2bed 190-230k....

Meow

As usual, they haven't a clue...


-

Opponent

unfortunately even though its nonsense this is what landlords will use to set rents this year