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Dubai: The Dubai Government's decision to reduce the rent cap by two percentage points to five per cent is a welcome move and strengthens the government's earlier position to support the majority of the emirate's population - namely tenants who have been a victim of unreasonable rent hikes in the past few years.
"The rents could only be increased by up to five per cent in 2008," Sultan Butti Bin Mejren, director-general of Dubai's Land Department, told Gulf News on Friday.
Many landlords have increased the rents for 2008, violating even the seven per cent cap which had been set from 2007 indefinitely until further notice, by inventing 'reasons' and 'means' to evict the tenants - who then fall prey to such tricks.
Those whose contracts are up for renewal on January 1 have already received their notices. Many have already signed their cheques.
Nevertheless, the new decision will help many of them to have their rents reduced.
Implementation
Bin Mejren said Dubai's Land Department, the Real Estate Regulatory Authority (Rera) and the Rent Committee will implement the new rent cap.
"Those who feel landlords are violating the rent cap should approach the Rent Committee, and we will look into the issues," he said.
Dubai's top property regulator had already urged tenants to seek the protection of the Rents Committee against possible violation of the rent cap, as some landlords have already hiked rents by 20-30 per cent, ignoring the government directive.
"Tenants whose new rent agreement is in violation of the rent cap should file complaints with the Rent Committee and seek protection," Marwan Bin Galita, chief executive of Rera told Gulf News recently.
"Anyone who increases the rent beyond the cap is in violation of the rule and I urge tenants not to sign the contract. In fact, they should file complaints and get things corrected; otherwise, this problem could escalate."
Troubles
Rising house rents, traffic congestion, the increasing cost of living and the falling value of the US dollar remain the prime concerns for the 1.44 million residents of Dubai, whose economy is on an explosive growth path.
Dubai's gross domestic product (GDP) has been growing at roughly 16 per cent a year for the past three years.
Tenants have been seeking the government's intervention to protect them from seemingly excessive rent hikes - which even ranged from 40 to 80 per cent during 2004-05, making life in Dubai unecon-omical for many.
Some relocated, others sent back families home and adopted a forced bachelorhood - a compromise that helped them make both ends meet.
But that wasn't what expatriates living here wanted from an economy that they themselves help to build.
It is against this backdrop that the Dubai Government, which tends to support a free economy, felt it necessary to intervene and issue the rent cap decree to support its population.
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