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Dubai to Allow Rent Jumps of as Much as 20%

Middle East Many expats still flying in Knoteetingham. Regional issues can be discussed here.

Dubai to Allow Rent Jumps of as Much as 20%

Old 24th Dec 2013, 14:02
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Dubai to Allow Rent Jumps of as Much as 20%

Dubai to Allow Rent Jumps of as Much as 20% - Bloomberg

Is this sustainable, everything monetary seems to be upwardly mobile in the UAE. Is it even worth seeking employment here anymore?
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Old 24th Dec 2013, 17:44
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The good thing is they are all not thieves. I just renewed and while the calculator allowed 10% my Local land lord left it at zero.
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Old 24th Dec 2013, 18:05
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.... and the allowance will be TA TA TA RA TA RAAAAAAAA ........ :

The f.....ng same as since 2006!

Cost neutral my a$$.
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Old 24th Dec 2013, 19:27
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So expo further bolsters the rent increases. Has anyone told them it's in 2020?? 7 years of rent hikes in the region of 20/40% is totally unsustainable.

Make sure your tenancy contracts are registered with EJARI and familiarise yourself with the legalities.
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Old 24th Dec 2013, 20:36
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My family lives in this part of the world, and our new contract just came with a 10% hike. , Two of my friends also renewed their contracts and both got about the same percentage increase. Looks like the rush is on for rental increments.
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Old 25th Dec 2013, 00:04
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Loved the bit about a 4% tax on property transactions 'to avoid another bubble'.

Hmm, that, or paying off the neighbours down the road for the rescue when the first one burst.

But it does look like they are trying to put in writing what a landlord may do with regards to rent hikes, albeit I sincerely doubt it's done in the interests of the tenants as it is portrayed in the article. I have no insight into the benchmark they are using to determine how much a given rent is below average, but it does read as if landlords are allowed rent hikes only up to the benchmark average. If the benchmark is somewhat accurate, it then follows it is the people who have so far been paying a below average rent, who are now looking at rent hikes.

Well, if you live in Dubai you've chosen to settle in a part of the world that is ruled by a strange mix of rampant capitalism, absolute monarchy and sharia law. That such a system can, and will, throw financial wobblers at you that would be unheard of in other parts of the world should not come as a surprise. Neither should the fact there's nothing to protect you against this if it is the will of the ruler that you, the well-earning part of the expatriate, need to pay more money to him and his buddies.

The sh1tty part for loads of people on this board here is, of course, that the owner of the sand is also the owner of the flying club they keep aloft. And that means he's unlikely to give back with one hand (housing allowance increases) what he is taking with the other (rent increases). If this situation makes you feel, shall we say 'stuffed', the lesson is to offer ones backside, accept the inevitable, and say 'thank you, may I have another night turn across the Bay please'?
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Old 25th Dec 2013, 03:18
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You reap what you sow...
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Old 25th Dec 2013, 09:34
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The clock is ticking. This bubble will burst when? 12 to 18 months I guess. Any better informed guesses?
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Old 25th Dec 2013, 11:26
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Bubble, what bubble

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Old 25th Dec 2013, 23:19
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Only a problem for Westerners...

Because living in cheaper Sharjah is not an option.
The "IR" part of EmIRates, meaning Indian Rules, might cost the company in the long-term unless the Accomodation Allowance is addressed in 2014.

According to friends outside the Flight Deck there are western EK08 and above grades from Europe, Oz and North America who rely on the accomodation allowance to supplement their low base salaries at EK.

Not an issue for those who live in Sharjah...
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Old 26th Dec 2013, 04:43
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My contract expires next week, ejari had been saying a 10 percent increase in rent is valid. Now ejari is saying a 15 percent increase is acceptable. I have received no notifications from the real estate agency about wanting to raise the rent. The law states a notice of 90 days must be given for any rent changes. Does anyone have any experience with the rent committee? My contract is registered with ejari. If I go to the rent committee, are they going to say that I should pay the increase because that is what ejari says? even though I have not received any notice about a rent increase.
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Old 27th Dec 2013, 10:18
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Hi all. Have a friend considering buying a townhouse as investment in RAK at Royal Breeze. Buy for 900K and thinks it will rent for 65K.
Opinions please?
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Old 28th Dec 2013, 06:16
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Guys, companies like EK pay the housing allowance against what they pay for accommodation. As they are renting a huge amount of properties they negotiate a very good deal and pay an equivalent amount. It would not make business sense to pay more than their own expenses, it has never been pitched against inflation. This is why company accommodation is great value with the likes of EK. If someone takes the allowance then finds they can't continue to make extra money or improve their life style then it was a poor decision. Going on about it and blaming others just illustrates an inability to take responsibility.
Rents and prices will rise and fall, more property will come on the market but the market will find its level. Some people will make money and some will loose their shirt.
Let supply and demand decide rather than some artificial calculator or cap.
DD
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Old 28th Dec 2013, 07:58
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Meydan Heights Villas is what we all should expect over the next few years. EK owned, so as leases come up in town more of us can expect to be moving out to the other side of the Meydan grandstand!
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Old 28th Dec 2013, 15:10
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Good location..surely beats DSO's location
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Old 7th Jan 2014, 05:31
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Renting in Dubai

Folks I just stumbled over this thread. One thing that struck me over the years is that a lot of people are totally unaware of the laws of Dubai and your rights as a tenant. The laws are pretty good, if you know about them.

In order to help I cut n' paste the laws into one booklet which has been widely distributed amongst my workmates and my community. I'm very happy to email a copy to anyone who is interested.
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Old 7th Jan 2014, 08:33
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Well the whole point of the thread is that the law just changed, and the change was in the landlords favor. Is your booklet current?
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Old 7th Jan 2014, 11:18
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Royal Breeze RAK

The price you quote of, 900k really depends on the apartment, size, and view, and to a certain degree the building.


The rent you mentioned 65k is also reasonable, little high but depends on number of rooms, as well as if the al Hamra Annual Maintenance is included.


One caution, there is a Air Con cost not usually included in base rent.
Include Water, Electricity, Tells/Internet, plus AIR CON.


Nice place to live, need a car, as most facilities are some distance away.


Welcome to EK Commuter World.


Glf
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Old 7th Jan 2014, 13:03
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Originally Posted by Laker View Post
Well the whole point of the thread is that the law just changed, and the change was in the landlords favor. Is your booklet current?
Only a small part changed and that was the percentages which LL are allowed to increase your rent. No changes to any of the other laws yet.

Take an example that the average rent for your property is AED100,000 a year. You go to the RERA rental calculator (which was adjusted for the change in percentages on 1st Jan) and the allowable increase is as below.


Old - No increase if up to 25% less. New no increase up to 10% less. (if you pay 90,000+ no increase allowed)
Old - 26% - 35% less, increase max 5%. New 11% - 20% less, increase max 5% (if you pay 80-89,999 maximum increase of 5% of your current rent)
Old - 35% - 45% less, increase max 10%. New 21% - 30% less, increase max 10% (if you pay 70-79,999 maximum increase of 10% of your current rent)
Old - 46% - 55% less, increase max 15%. New 31% - 40% less, increase max 15% (if you pay 60-69,999 maximum increase of 15% of your current rent)
Old - Greater than 55% less, increase max 20%. New Greater than 40% less, increase max 20%. (if you pay 59,999 or less maximum increase of 20% of your current rent)
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Old 7th Jan 2014, 13:12
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Rents are definitely sky-rocketing, this legislation serves to limit the band in which prices do increase. Another insipient threat is the large increases in Service Fees, which puts pressure on both owners and renters.

For those of you considering opting out, in my opinion it is ONLY feasible now if you are single. Anyone who is married with the potential of 2 sets of family and friends visiting, and certainly anyone with kids would be mad to even consider opting out unless the intention is to purchase.

In addition to normal growth and investment in the UAE, as long as there is political instability in the gulf, Iran is under economic sanctions, Russians can't put their money in Cyprus, the price of gold and the Indian Rupee keeps falling, cash will flow to UAE property. From a rent perspective the recent changes in mortgage law also remove end users from the buyers market and serve to increase rental demand.

In short - be very careful when opting out to rent, unless the intent is to buy at a later stage.
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