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Dubai sets limits for rent hikes in 2010 |
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Middleeast News
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Wednesday, 30 December 2009 23:31 |
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DUBAI -Dubai's ruler Sheik Mohammed bin Rashid Al Maktoum issued Wednesday a new decree to set limits for rent increases in the emirate in 2010.
The rent caps will be similar to those set this year and will be become effective immediately, according to a statement from the ruler's office.
"The new decree comes as part of Sheikh Mohammed's keen interest in ensuring stability of Dubai's property market as well as creating legislations that guarantee promoting landlord-tenant relationships," the statement said.
Dubai lowered the minimum rent cap by two percentage points to 5% from 7% in 2008 for those paying between 26% and 35% below the rent index level of the Real Estate Regulatory Authority, or RERA. It has maintained it since then.
According to the new decree, the rent cap will be 10% if the 2009 rent is between 36% and 45% below the rent index level, and 15% if the rent is between 46% and 55% below the index level. Those paying more than 55% below the rent index level, will face a 20% rent cap, it added.
Dubai is the second-largest sheikhdom in the seven member federation, the United Arab Emirates.
The tax-free emirate has been hit hard by a property slump as a result of the global economic downturn. Home values have slumped about 50% from their peak in the third quarter of last year. - Maktoob
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