admon

Chief Executive of RERA, has said it, so it is now open season on rent..
http://archive.gulfnews.com/articles.../10274811.html

So the 'rent committee' now serves no purpose whatsoever and landlords can officially charge what they like.

While the market is on the way down, will landlords see it that way?

jebelaligardener

Glad I already completed the renewal of my lease which was due the end of this month!

Was surprised that The Gardens hadnt increased my rent this year - maybe this is what they were waiting for...

Blue Cat

"We don't need a rent cap this year. We need to freeze everything. 2009 is a tough year and we shouldn't interfere with rents too much," Bin Galita said.

People will be rejoicing thinkin their rents won't be going up?

admon

its about to be a torrid time for all of us renewing rents in the next year I think..

admon

yep, typically 'carefully chosen words'.
You just know that the landlords are gonna try for one big last hit off the rents.

And for those that have been in property before 2006, well rent for them could double..

Blue Cat

some Landlords are wising up and can see what the future holds. Some are just driven by greed. We have signed our lease with a 5% increase for 2009, we are happy with it as we are well below market prices.

MataHari

we are going into the 5th year in our house now, just done the renewal and it was only 5%...

admon

all the 5% renewals up to this point are because that was what everyone was expecting as a rent cap and what was still in place.

From now, it will be interesting to see what rises the landlords are going for - in thoery, some should be coming down, but that is never going to happen while they have an exisiting tenant.

Blue Cat

your right if your in a villa, but take an apartment building for example. I think we have about 90 apartments in this building, if say half of them were empty then I would imagine my Landlord would be happy to take 90k rather than nothing?

admon

common sense would say that is right, but when did this place ever adhere to that?

..are half of your apartments empty?

Blue Cat

I don't think so but they may well be later in the year, for the first time ever there is a To Let sign outside. I asked the watchman how much they were leasing for - 140 for a 2 bed. I laughed at him and told they would be lucky to get a 100. He agreed.

Autonomy

No rent cap = my rent x 2

I think I'm going to kill someone if they try to double my rent.

twisty100

Rents are coming down, no question about it. Discovery Gardens used to be 110 AED for 1 large 1 bed now 80 AED. Similar with the Views, used to 220 AED now going for around 180 AED for a 2 bed. I made an offer on a downtown apt 2 bed, askeng price was 200K, got it down to 170 AED within two emails to the owner. The situation will only get better as there will be less demand with increasing supply.

The Dubai rental market has always been in the hands of the Seller not the Buyer, the tables have turned, if your landlord is greedy, simply walk away and get a better deal. They will quite soon become more 'co-operative'.

Autonomy

You want to find me a very spacious new build 2 bed for 80K? Then we have a deal.

admon

the big problems are for people that have been here for years...

I know a number of people renting 3-5 bed villas in jumeirah and surrounds still paying 90-110k.

even in a rental market reducing by 30%, those people face real market rent for the first time since 2005, meaning 200k plus for those properties