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Mohammed bin Rashid orders freeze in 2008 rents values

Jan 19, 2009 - 09:05 -

Dubai, 19 Jan. 2009 (WAM) - Vice President and Prime Minister of UAE His Highness Sheikh Mohammed bin Rashid Al Maktoum has, in his capacity as Ruler of Dubai, issued a decree that provides for halting any increase in residential and non-residential property rent values in 2009 for the tenants who renew their contracts signed in 2008.

The decree number (1) for 2009 stipulates that the rental value must be equal to, or less than 25 percent of the corresponding rent in the average annual rent index.

The decree also defines a new formula for lower rent values which allows a proportional increase in rents for 2009. According to the new formula, the increase in property rent will rise in proportion with the drop in 2008 rent value in the average annual rent for the same property.

The corresponding rent is the rent value of the property unit in the average annual rent index, created by the Real Estate Regulatory Agency (RERA).

Mohammed Ibrahim Al Shaibani, Director of the Dubai Ruler's Court said the decree was aimed at curbing the growing increase in property rent value in the emirate to maintain a balance between the interests of both landlords and tenants and to ensure stability of the real estate sector in a way that will reflect positively on the emirate's comprehensive development plans.

WAM/MAB