|
Dubai: The seven per cent rent cap is the best New Year's gift from His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai to the people, residents said yesterday.
They said the cap brings much needed relief especially to the middle-class, many of whom were forced to send their families back home due to rising rents.
Shaikh Mohammad yesterday issued a decree, which stipulates that a rent increase shall not exceed seven per cent of the annual rent.
"This is very good news," said Nilang Shah, a Dubai-based Indian who works in the financial service industry. "I have come across plenty of cases where families had to send members back home simply because the lone income earner was not able to cope with the rent increase. The rising rents have made life difficult. From a 15 per cent rent cap, Shaikh Mohammad has brought it down to 7 per cent ... this shows that the Government of Dubai is concerned about the rising rents," he added.
Expressing similar sentiments Dr Edna Naddaf, Lebanese, said: "It is great news. I just hope that it stays that way for a longer time and not just for a year. She said that her landlord had increased the rent four times in the last six years.
"It started of with Dh150,000 and now it has gone up to Dh270,000. There is no improvement whatsoever to the property. The rent they take from us does not match the standard of services provided by the landlord."
Alyssa Murguia, a Dubai-based American, had this to say: "It is a very nice policy to get the rent cap down from 15 per cent to 7 per cent. Rent increase will not be phenomenal anymore."
"I have complete faith in the Dubai Rent Committee," said Mohammad Kazerouni, an Iranian who works as a commercial property consultant. "All that I would like to say is that the 7 per cent rent cap will help many to save. There is the rent committee which should be approached by tenants if the landlord exceeds the stipulated rent cap."
"The problem of rent increases happens everywhere in the world and Dubai is no exception. The rent cap will provide a lot of relief to tenants who were waiting to watch what will happen after the 15 per cent rent cap expired," said Dr Ajay Juneja, an Indian, who pays 33 per cent of his earnings as rent every month.
He said that a rent cap is a big respite for the middle income group.
"I know a lot of people who have migrated to other places like Australia because they could not cope with the rents," said Dr Juneja.
Sultan Khamis, a UAE national who is a property consultant, said the new decree on rent cap comes at a time when people were desperate for rents to decrease.
"Dubai is a brand name for real estate and so we see the rents zooming upwards. But yes, at the same time as a UAE national, I welcome this rent cap of 7 per cent for all those expatriates who live here. This shows that the Government of Dubai is trying its level-best to ensure that living in Dubai becomes affordable for all expatriates."
Mohammad Ebrahim, a Pakistani banker, said: "The seven per cent rent cap is definitely good news but I would suggest that people who have savings should invest in property."
"The rent cap of seven per cent is no less than a New Year's gift to Dubai residents from Shaikh Mohammad. The timing is perfect and has put a smile back on tenants's faces," said Ailan Lapos, a Filipina, who works as a secretary. "The new decree on rent cap will help the masses. Some landlords have been increasing the rents not thinking from where tenants will get that much money. I am happy ... the Dubai government has been so considerate towards residents, especially the middle-income group. It will allow the middle-class to breathe freely this year," she said.
Rent caps in the UAE
Dubai
Maximum raise of seven per cent on annual rent with effect from January 1, 2007
Conditions:
1. Maximum seven per cent increase on renewal of rent contract if the rent was not increased during 2006
2. No rent increase during 2007 on new contracts signed (for the first time) in 2006 with the new tenant
Sharjah
Rents cannot be increased for the first three years of a tenancy contract (Rules are currently under review by a special committee)
Ajman
Maximum 20 per cent increase after three years of the tenancy contract
Abu Dhabi/Al Ain
Maximum seven per cent increase on the annual rent
Ras Al Khaimah
Maximum raise of 15 per cent on annual rent
Fujairah
Rent cap is on the cards
|
