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Are Landlords Abiding By The Rent Index in Dubai?

sorry_rentedTalking to colleagues, friends, or when checking out the real-estate adds in the local media no-one can fail to notice that rents are once more on the rise. There is a law regulating rentals in Dubai, where the landlord can increase rents by a minimum of five per cent to a maximum of 20 per cent — however this is when the existing rent is below the average market rate stated in Rera’s geographic rent index. But, do landlords actually abide by this law?

Expat Echo checked with the experts at Move One Relocation and 1Step Properties who advised that in their experience landlords are ignoring it as demand is just too high.  They use the RERA Rental Calculator to work out if the landlord has the right to increase the rent but are finding that even if the rent is not 26% below the RERA Rent Index Landlords still increase rents!  Tenants do have the right to file a case against landlord with Rental Committee however this can cost a lot of money and time and most tenants end up accepting the new rent or simply move out. 

Click here to read a recent article on this subject in Gulf News.

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