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? :confused:

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. :D

.... and the allowance will be TA TA TA RA TA RAAAAAAAA ........ :

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

Cost neutral my a$$.:yuk::yuk::yuk::yuk::yuk::yuk::yuk::yuk::yuk::yuk::yuk:

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.

My family lives in this part of the world, and our new contract just came with a 10% hike. :ugh:, 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.

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'?

You reap what you sow...

The clock is ticking. This bubble will burst when? 12 to 18 months I guess. Any better informed guesses?

Bubble, what bubble
 

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...

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. :ugh:

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?

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

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!

Good location..surely beats DSO's location

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.

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?

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

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)

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.

I really appreciate the input guyz. I got encouraged from the responses on here, and decided to call RERA to inquire about the new regulations, and whether they allowed my landlord to haphazardly up my rent.

Boy wasn't i pleasantly surprised, they told me not to accept any increment from my landlord, since from the info i was giving them, with regards to when i moved into the property and how much i was paying for it, i fell under the nil increment category. They advised me to be firm and if my LL gave me any trouble i should just call them up and they will deal with my case.
I emailed my LL and told him that i was rejecting the new contract with the 10pcnt increment, citing the advise from RERA as my reason.

I'm happy to say that i just received a new contract with exactly the same rent as last years! woo hoo!:)

@Beady eye, your info on the new regs. is spot on, thanks for posting.:ok:

If anyone has doubts about what their new rent should be, my advice to you is call RERA, they will be in a position to assist.

Afwhan, it's cut n paste of the decree really
Alternatively use the RERA Rental Calculator :: eServices ::

The old calculator said 10% and current calculator says...


The rent for a Three bedrooms Villa in Xxxxxxxxx of 200000 to 240000 AED per year.
Rent is lower by 30% of the average rent for the type of unit you have chosen .
According to the law governing change, your rating category is (form 21% to 30%)
The rate of increase for this category is 10%


Same same. Again, my guy gave us ZERO increase 15 days ago. Local guy who I won't name here yet is well and truly involved in Emaar. Some of these land lords are smart enough to cross reference their required income versus property sitting empty for two, three or more months. Most are not. The bubble will come and pop again. I pick August this year.

laws /email
 

mate,

my work is moving me over asap, would love to have a copy if you would be so kind?

Is it still valid following the changes?

Be careful going to RERA
 

Careful Odericko.

Your landlord might refuse to renew your contract in 12 months time.

We threatened our landlord with going to RERA when he wanted a 10% rise this year "you have cheap appartment" for the 2nd year of our stay when legally we are entitled to keep the same rent.

His response was simple "If you go to RERA (and keep the same rental) I won't renew your contact next year"

Dubai Greedy B*stards Club doing well hey?
We compromised on 5%
It's near the only school we could find at the time which would take both our kids....

Illegal, by law you must be given 12 months notice of eviction and he can only evict for 1 of 4 reasons. Otherwise the contract rolls over for another 12 months.

Article 24 (2)

2. Landlord may demand eviction of tenant upon expiry of tenancy contract limited to the following cases:
a. If the owner wishes to demolish the property for reconstruction or to add new constructions that prevent tenant from benefiting from the leased property, provided that necessary licences are obtained.
b. If the property requires renovation or comprehensive maintenance which cannot be executed while tenant is occupying the property, provided that a technical report issued by Dubai Municipality or accredited by it is to be submitted to this effect.
c. If the owner of the property wishes to recover the property for use by him personally or by his next of kin of first degree provided that he proves that he does not own a suitable alternative property for that purpose.
d. If the owner of the property wishes to sell the leased property.
And for the purpose of clause (2) of this Article, Landlord must notify tenant with reasons for eviction at least twelve months prior to the determined date of eviction subject that such notice be sent through the Notary Public or by registered mail.

Unfortunately my ESP isn't working, so I don't know your email address :)
See post number 22.


For anyone else who is renting/thinking of doing so be warned that LL and estate agents (hawk, spit!) will try all sorts of tricks to deny you your rights under the laws of Dubai, including but not limited to denying such laws exist, saying they don't apply in this case, saying the laws have changed and completely ignoring them. Don't be suckered into any of that BS.

Law Number 26 of 2007. This was the original law established and knows as the “Law Regulating Relationship between Landlords and Tenants in the Emirate of Dubai No. 26 of 2007”.

Law number 33 of 2008. This law amended some of the provisions of law 26 and is the current law.

From the Satirical press ;)panarabiaenquirer.com

Landlord Awards showcase the very best in Dubai rent increases

There were tears and cheers last night as the Landlord of the Year Awards made an emotional return to Dubai. The glittering event, last held in 2008, welcomed over 500 of the city’s most notorious property owners, many of whom expressed delight that their industry had finally emerged from the difficulties of the financial crisis.

“It just makes me shudder remembering was it was like back then. With rent prices plummeting along with opportunities to completely bleed our tenants dry, they were dark times indeed,” said Mahmoud Al Sansa, who owns 27 properties across Dubai.

“But I can proudly say that the tide has now turned and we’re well and truly back to our absolute best. One annual cheque is the norm once more and yearly rates are going up faster than we can evict people and draw up new contracts. I’m super pleased that these wonderful awards have now returned too.”

Among those present was renowned proprietor Reza Meshuggnah, four times winner of the prestigious Most Ludicrous Rent Hike Award. Speaking before the ceremony, he expressed his confidence in making it five. “My rents are now more than twice what they were in were in 2009, I’m sure to win,” he said.

However, Meshuggnah lost out to rival Mohammed Schneider, who has managed to hike his rents by almost 300 per cent since Dubai won the Expo2020 bid in November. “Just you wait and see how much I’m charging when the Expo actually comes to town,” he beamed tearfully.

The coveted Utter Bastard Of The Year gong went to Hassan Hassan O’Reilly, who successfully brought to trial 43 tenants for non-payment of rent for properties that have never existed.

However, the night’s biggest cheer was saved for the closing celebration, the Lifetime Achievement Award, which went to one of the industry’s most respected names, Omar Bakhra. The Iranian businessman – largely credited as the first landlord to require 12 months payment upfront, plus 10 per cent administrative charges – this year made history when he successfully demanded three years rent in advance for a studio apartment in the Marina.

“You’re an inspiration to us all,” said the show’s host Dom Locksmith on presenting Bakhra with his award.

The rents v. purchase prices mentioned in this thread suggest that buying is a no brainer. Maybe I'm missing something? :confused:

Patience. The bubble is about to burst. Same as 2008. Buy AFTER the bang when everybody bets on Dubai being finished for good. It won't be. Yet.