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RERA Move Evokes Mixed Response.

Summary: DUBAi u The release of the first official rental index for Dubai by the Real Estate Regulatory Authority has elicited mixed response from residents.

Residents said the lack of a rent cap would eventually end up with landlords charging high rents especially in old buildings where residents pay competitively less rents as they rented it before the rent hikes in the emirate.

oRERA says itAEs not a regulation but just a guideline. Even when the rent cap was on, unscrupulous landlords were adding service charges to increase the rent. Aa With the global meltdown, the rent is supposed to decrease but we did not feel any down fall in rents yet. I seriously think without a regulation on rents landlords are going to increase the rents as they want,o said Abdul Jaleel, a media executive working in Dubai Media city. AaAaAa oI think this is a bit confusing also. If they are just guidelines, I think the landlords will be able to manipulate it easily,o he said.

However, Antony Smith, a South African national said, oitAEs a good a move and it will help but it is early to say if RERA will be able to ensure if the index is followed by landlords.

oThe rents are soaring despite the propaganda that itAEs going down. Aa An index is a good way to give an idea for both la ndlords and tenants about the rental scene but the most important thing is to ensure that landlords follow it,o he said. AaAaAa The rental index will Aa evaluate all types of properties is based on giving each property points for various attributes such as building facilities, near-by retail outlets, age and condition of building, etc. oA guideline means nothing. There should be a law to enforce it. Otherwise I donAEt think it will make any difference. The rent in Dubai is expected to fall down but I donAEt think its happening yet as my landlord demanded more rent. I think a law to fix the rents in each area and buildings will be more appropriate,o said Robert Thomas, an Indian national. C uriyasbabu@khaleejtimes.com

riyasbabu@khaleejtimes.com

Aa

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Publication:Khaleej Times (Dubai, United Arab Emirates)
Date:Jan 15, 2009
Words:378
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