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-   -   Updating on the maximum rent increases in Dubai (https://britishexpats.com/forum/sand-pit-116/updating-maximum-rent-increases-dubai-818832/)

mikewot Dec 21st 2013 3:41 pm

Updating on the maximum rent increases in Dubai
 
Changes to the maximum rent increases allowed in Dubai. It's actually just a sharpening up of decree number 2 of 2011, which is what the current increases are based on.
Old - No increase if up to 25% less. New no increase up to 10% less.
Old - 26% - 35% less, increase max 5%. New 11% - 20% less, increase max 5%
Old - 35% - 45% less, increase max 10%. New 21% - 30% less, increase max 10%
Old - 46% - 55% less, increase max 15%. New 31% - 40% less, increase max 15%
Old - Greater than 55% less, increase max 20%. New Greater than 40% less, increase max 20%.

I wonder when the decree will be published and when RERA will update the rental calculator though? Much better than AD just suffered.

http://gulfnews.com/business/propert...acts-1.1269593

Maxima Dec 22nd 2013 4:15 am

Re: Updating on the maximum rent increases in Dubai
 
Should shut up all those who were gleeflully predicting that Dubai will remove all rent caps as it will follow Abu Dhabi

flares Dec 22nd 2013 6:15 am

Re: Updating on the maximum rent increases in Dubai
 

Originally Posted by Norm_uk (Post 11047813)
Dubai seems to be ahead in curbing the greed of landlords. Abu Dhabi is ridiculous. I can see literally dozens of empty apartments in my compound with at least 150 more due to come online soon and we've already seen 20% increases or more for some of our neighbours.

I'm all for making money on investments but there's market forces and then there's evil...

N.

Which compound are you on Norm? Surely prices must correct themselves if there are empty units. I realise they won't because of the mentality.

Riyadh will have similar issues shortly. Not enough Western compounds have been added to the market and there will be a large influx for schemes such as the metro. Demand will exceed supply again. I've read that the reason for lack of new compounds is that land prices are too expensive apparently. They must be bloody high as the revenues from Western units are right up there.

csdf Dec 22nd 2013 6:26 am

Re: Updating on the maximum rent increases in Dubai
 

Originally Posted by Norm_uk (Post 11047813)
Dubai seems to be ahead in curbing the greed of landlords. Abu Dhabi is ridiculous. I can see literally dozens of empty apartments in my compound with at least 150 more due to come online soon and we've already seen 20% increases or more for some of our neighbours.

I'm all for making money on investments but there's market forces and then there's evil...

N.

It's interesting: for all the new modern stuff along the side of the motorway (aka Al Bandar, Al Muneera) rent demands are up by as much as 25% with some landlords. But just across the motorway in KCA, I've heard of recent rent renewals with 0% increase.

Irishbeekeeper Dec 22nd 2013 6:39 am

Re: Updating on the maximum rent increases in Dubai
 

Originally Posted by mikewot (Post 11047276)
Changes to the maximum rent increases allowed in Dubai. It's actually just a sharpening up of decree number 2 of 2011, which is what the current increases are based on.
Old - No increase if up to 25% less. New no increase up to 10% less.
Old - 26% - 35% less, increase max 5%. New 11% - 20% less, increase max 5%
Old - 35% - 45% less, increase max 10%. New 21% - 30% less, increase max 10%
Old - 46% - 55% less, increase max 15%. New 31% - 40% less, increase max 15%
Old - Greater than 55% less, increase max 20%. New Greater than 40% less, increase max 20%.

I wonder when the decree will be published and when RERA will update the rental calculator though? Much better than AD just suffered.

http://gulfnews.com/business/propert...acts-1.1269593

I know I am going to look like a door knob (which I already do) but can someone explain this to me in the king's language please?

Kix Dec 22nd 2013 7:08 am

Re: Updating on the maximum rent increases in Dubai
 

Originally Posted by Irishbeekeeper (Post 11047866)
I know I am going to look like a door knob (which I already do) but can someone explain this to me in the king's language please?

Take an example that the average rent for your property is AED100,000 a year.

Old - No increase if up to 25% less. New no increase up to 10% less. (if you pay 90,000+ no increase allowed)
Old - 26% - 35% less, increase max 5%. New 11% - 20% less, increase max 5% (if you pay 80-89,999 maximum increase of 5% of your current rent)
Old - 35% - 45% less, increase max 10%. New 21% - 30% less, increase max 10% (if you pay 70-79,999 maximum increase of 10% of your current rent)
Old - 46% - 55% less, increase max 15%. New 31% - 40% less, increase max 15% (if you pay 60-69,999 maximum increase of 15% of your current rent)
Old - Greater than 55% less, increase max 20%. New Greater than 40% less, increase max 20%. (if you pay 59,999 or less maximum increase of 20% of your current rent)

Well that's how i read it.

Irishbeekeeper Dec 22nd 2013 9:40 am

Re: Updating on the maximum rent increases in Dubai
 

Originally Posted by Kix (Post 11047875)
Take an example that the average rent for your property is AED100,000 a year.

Old - No increase if up to 25% less. New no increase up to 10% less. (if you pay 90,000+ no increase allowed)
Old - 26% - 35% less, increase max 5%. New 11% - 20% less, increase max 5% (if you pay 80-89,999 maximum increase of 5% of your current rent)
Old - 35% - 45% less, increase max 10%. New 21% - 30% less, increase max 10% (if you pay 70-79,999 maximum increase of 10% of your current rent)
Old - 46% - 55% less, increase max 15%. New 31% - 40% less, increase max 15% (if you pay 60-69,999 maximum increase of 15% of your current rent)
Old - Greater than 55% less, increase max 20%. New Greater than 40% less, increase max 20%. (if you pay 59,999 or less maximum increase of 20% of your current rent)

Well that's how i read it.

I think I get it, in a way.
But then I see a loophole, because no landlord will opt for a renewal then.
They will just get a non-renewable contract made and just keep on getting a new contract made every year instead of renewing the old one. Or is that not allowed?

mentalist Dec 22nd 2013 9:50 am

Re: Updating on the maximum rent increases in Dubai
 
But how do they calculate what the Average rent should be? If it's simply the number of bedrooms and location then that would be ridiculous. Surely it takes into account the standard of amenities provided and the age of the property too. Our villa is over 20 years old and parts of it are definitely showing their age.

mikewot Dec 22nd 2013 9:56 am

Re: Updating on the maximum rent increases in Dubai
 
Renewable contracts are normal. To 'evict' someone you need to follow the law on 12 months notice. There are only 4 reasons which you can give 12 months notice, see the Renting in Dubai FAQ.
Average prices are calculated by RERA. I've heard lots of rumours that they use Dubizzle prices. However they actually have all the real data available through Ejari, not the LL Dubizzle wish list.


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