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So, will be it rentmageddon in Dubai?

So, will be it rentmageddon in Dubai?

Old Apr 22nd 2014, 10:21 am
  #1  
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Default So, will be it rentmageddon in Dubai?

Rumours swirling that the rental calculator will be abolished at the end of the month, with LLs free to ask whatever rent they like. It would be insanity, but when has that ever stopped them?
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Old Apr 22nd 2014, 10:29 am
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Default Re: So, will be it rentmageddon in Dubai?

Originally Posted by Eeyore View Post
Rumours swirling that the rental calculator will be abolished at the end of the month, with LLs free to ask whatever rent they like.
Same rumour was going round when AD cancelled the 5% increase limit, not going to happen. Remember that the percentage increases bands were only changed late last year.
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Old Apr 22nd 2014, 10:33 am
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Default Re: So, will be it rentmageddon in Dubai?

I'd like to share your optimism, but I can't. The fact that the increase bands were only recently changed doesn't seem to mean a great deal. After all, if AD has abolished any rental price controls, why should Dubai keep them?
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Old Apr 22nd 2014, 10:35 am
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Default Re: So, will be it rentmageddon in Dubai?

Originally Posted by Eeyore View Post
if AD had abolished any rental controls, why should Dubai keep them?
Because AD's renting laws are zero in comparison to Dubai. The laws for Dubai are really very good for renters, I cannot think of any logical reason for ripping the whole lot apart.
There are changes coming, they were communicated last year, but refinements not just dumping it all.
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Old Apr 22nd 2014, 11:37 am
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Default Re: So, will be it rentmageddon in Dubai?

Mind boggling really that a LL would rather keep his properties empty, than fill them by charging a realistic price.

Just renewed mine at the same rate as the last 4 years, have a realistic landlord who is actually a very nice chap and visits once a year and always brings a box of dates as a gift !!
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Old Apr 22nd 2014, 12:37 pm
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Default Re: So, will be it rentmageddon in Dubai?

Originally Posted by Eeyore View Post
Rumours swirling that the rental calculator will be abolished at the end of the month, with LLs free to ask whatever rent they like. It would be insanity, but when has that ever stopped them?
it happens now in auh.
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Old Apr 22nd 2014, 12:38 pm
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Default Re: So, will be it rentmageddon in Dubai?

Originally Posted by Dubaiexile View Post
Mind boggling really that a LL would rather keep his properties empty, than fill them by charging a realistic price.

Just renewed mine at the same rate as the last 4 years, have a realistic landlord who is actually a very nice chap and visits once a year and always brings a box of dates as a gift !!
because they are not charged any mortgage when its empty unlike the row.
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Old Apr 22nd 2014, 12:39 pm
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Default Re: So, will be it rentmageddon in Dubai?

Originally Posted by Eeyore View Post
Rumours swirling that the rental calculator will be abolished at the end of the month, with LLs free to ask whatever rent they like. It would be insanity, but when has that ever stopped them?
I hope not. People I talk to say it's back to 2007 prices already. That either means it's about to go pop again or it might stabilise? Who knows.
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Old Apr 22nd 2014, 1:31 pm
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Default Re: So, will be it rentmageddon in Dubai?

Originally Posted by mikewot View Post
Because AD's renting laws are zero in comparison to Dubai. The laws for Dubai are really very good for renters, I cannot think of any logical reason for ripping the whole lot apart.
There are changes coming, they were communicated last year, but refinements not just dumping it all.
I agree. I really can't see the laws, which have been in place for some time, being revoked. Doing so would make the bubble even worse and Dubai doesn't need another 2008 right now. Well, not for some time anyway...
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Old Apr 22nd 2014, 3:50 pm
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Default Re: So, will be it rentmageddon in Dubai?

Originally Posted by Norm_uk View Post
Abu Dhabi removed the rent cap and it has become silly time at the funny farm. If Dubai does something similar they will literally price themselves out of any kind of competitiveness. At lot of companies are already reviewing operating costs in the UAE as they can't afford to pay for staff to live here...

N.
Amazingly, we are doing the opposite. Still bringing (international) people here as it is cheaper than keeping them in Delhi and Istanbul!
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Old Apr 22nd 2014, 4:02 pm
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Default Re: So, will be it rentmageddon in Dubai?

Interestingly the RERA calculator is being updated, I thought they had only just done that?

http://www.dubailand.gov.ae/English/...culatorEN.aspx

The rental index under updating.Please contact [email protected]
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Old Apr 23rd 2014, 5:28 am
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Default Re: So, will be it rentmageddon in Dubai?

lessons learnt from last crash - 0

date to next crash - 2016 then again in 2021
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Old Apr 23rd 2014, 5:48 am
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Default Re: So, will be it rentmageddon in Dubai?

How far in advance did you put the renewal date Patsy? It always says that if your date's too far in the future - stick in tomorrow and it give you the calculation.
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Old Apr 23rd 2014, 7:51 pm
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Default Re: So, will be it rentmageddon in Dubai?

Originally Posted by Norm_uk View Post
Some literally do not need the money. Many buy property to get a rental yield rather than a capitol gain so are happy to wait a few months. Some have bad rental agents working for them...many combine all three traits.

As long as the country promotes a feeling of temporariness and short term high gains this will continue.

Bubble time methinks. We had a 10% raise...almost the same as it would cost to move. Smart Landlord

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And yet another group of people are "laundering" money brought in from some of the broken countries in the region. They are not after a yield and don't live here either, but buying property in Dubai is safer than keeping a suitcase full of Ben Franklins buried in the garden.

I reckon the selling prices will crash at some point as the pipeline of new property coming onto the market is just too large for the sustained growth we are seeing, but the question is what will happen to rental prices? A huge part of the problem here is the scum otherwise known as estate agents. They are incentivised to push prices upwards.

The property market here doesn't work like in the real world where selling and rental prices are correlated. My landlord tried to justify his increase last year with this logic and I felt obliged to give him a 15 minute lecture in basic economics of a functioning property market and why this doesn't apply to Dubai...
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Old Apr 24th 2014, 4:25 am
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Default Re: So, will be it rentmageddon in Dubai?

Originally Posted by norsk View Post
And yet another group of people are "laundering" money brought in from some of the broken countries in the region. They are not after a yield and don't live here either, but buying property in Dubai is safer than keeping a suitcase full of Ben Franklins buried in the garden.

I reckon the selling prices will crash at some point as the pipeline of new property coming onto the market is just too large for the sustained growth we are seeing, but the question is what will happen to rental prices? A huge part of the problem here is the scum otherwise known as estate agents. They are incentivised to push prices upwards.

The property market here doesn't work like in the real world where selling and rental prices are correlated. My landlord tried to justify his increase last year with this logic and I felt obliged to give him a 15 minute lecture in basic economics of a functioning property market and why this doesn't apply to Dubai...
Only yesterday I overhead a colleague talking to a candidate;

"You are on 25,000, this role can pay 30-33,000 in Dubai. You currently live in Dubai but work in Abu Dhabi. Would you consider 30-33k?"
"No"
"May I ask why not?"
"I think salary should be 40,000 for me now."
"Ok, why such a large increase?"
"Expo"
"..........."
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