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Dubai: Dubai has lowered the rent cap by two percentage points to five per cent from the existing seven per cent, effective from January 1, 2008, Gulf News has learnt.
"The rents can only be increased by up to five per cent in 2008," Sultan Butti Bin Mejren, director-general of Dubai Land Department, told Gulf News on Friday.
Rising rents, caused by a strong demand and a lack of adequate supply, remains a major cause for concern among Dubai's residents, prompting the government to intervene.
As a result, His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, in 2006, issued a decree fixing the rent cap to seven per cent for 2007, lowering it from the earlier 15 per cent.
Bin Mejren said Dubai Land Department, the Real Estate Regulatory Authority 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 issue," he said.
Many landlords have increased the rents for 2008, violating even the seven per cent cap. However, the new decision will help many tenants in reducing the rents.
"Anyone who increases the rent beyond the cap, is in violation of the rule and I suggest the tenants should not sign the contract," Marwan Bin Ghalita, chief executive of Rera, told Gulf News recently.
Your comments
Good move and a nice New Year gift from His Highness. But landlords can still get away by charging additional costs such as maintenance costs. He can also ask for a refundable deposit from the tenant. What has the rent committee to say on this?
Anonymous
Dubai,UAE
Posted: December 29, 2007, 10:51
I hope the rule is here to stay and is properly implemented so that we can all start living a life in Dubai.
Haroon
Dubai,UAE
Posted: December 29, 2007, 09:38
The two per cent drop in the rent cap is a good decision. But how will the tenant even pay the five per cent increase when there has been no rise in salaries in the private sector?
Rajeev
Dubai,UAE
Posted: December 29, 2007, 09:34
Does this reduction apply to the whole of UAE or just Dubai? My family lives in UAQ (Umm Al Quwain). We used to pay a rent of Dh8,500 for a small villa, then it went up to Dh12,000. It further increased to Dh18,000 and now it is expected to go up to Dh 30,000.
Christine
Ajman,UAE
Posted: December 29, 2007, 09:09
I would appreciate if the government of Sharjah also takes similar initiatives
Mahwish
Sharjah,UAE
Posted: December 29, 2007, 09:08
Good move. However, greedy landlords can still manipulate the rent by threatening to evict the tenant. The rent commission will not be able to take immediate action because of the sheer volume of the complaints.
Roberto
Dubai,UAE
Posted: December 29, 2007, 08:57
This is a good move by the Dubai government. We appreciate their efforts to put a rent cap. It will greatly help the tenants.
Karthik
Dubai,UAE
Posted: December 29, 2007, 08:47
It is horrible; the rents are so high in Al Ain. They have increased so much that it is not possible to afford a house anymore.
Shafiul
Al Ain,UAE
Posted: December 29, 2007, 08:45
There are some landlords who will not follow the rent cap and will instead force the tenants to vacate the flat using the excuse of maintenance work.
Bharti
Dubai,UAE
Posted: December 29, 2007, 07:48
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