At the Dubai Marina.
PHOTO BY ARCHIVE
DUBAI – The Dubai Land Department is considering a proposal to include a three-year rental hike ban in new lease contracts.
Under the proposal, new lease agreements will have a provision for a no-rental hike within a three-year period.
“The Dispute Resolution Committee is studying such a proposal, but no decision has been taken on the ‘if and when’ to roll it out,” a spokesperson said.
It is not clear whether the proposal would also cover other real estate categories, such as retail premises.
In Sharjah, new contracts stipulate that rental increases can only be done after a three-year period.
In Dubai, all rental decisions are currently based on the Dubai Rent Index. This allows landlords to increase the rent if the current rent is up to 25 percent below the average for a similar property in the same area. If the rent is 25 to 35 percent lower than the average, landlords can increase the rent by 5 percent. ICA/Expat Media
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