The Dubai Land Department’s Rent Valuation Service Is Removing Obstacles to Rent Increases.
A key to resolving any impasse in lease negotiations between tenants and landlords is quickly emerging as the rent valuation service provided by Dubai Land Department. Market sources claim that the valuation is completed within a few days. In addition, that everyone involved in the rent negotiation process now accepts it as the final decision.
A landlord who recently used this service to terminate leases with tenants told us that it would take about 7 days to complete. It is accessible through the Land Department’s REST app. “A reputable third party, DLD, performed the valuation. Which is composed of representatives with adequate information of rental market dynamics and valuations.”
The price range is high, starting at Dh2000 and going as high as Dh10000. All varieties of rental properties, including shops and buildings for offices, are covered. However, residential customers use the service the most frequently.
The valuation services are used by landlords who believe that the current rents for their apartments or villas are significantly lower. The same goes for tenants who believe their landlords’ increases are excessive for the neighborhood or building in question.
It Costs Less
One tenant was able to renegotiate the terms of her lease with her existing landlord after the valuation. Said that she would prefer to spend the Dh2000 to get a fair valuation than to have to spend much more on moving to a new apartment. The valuation turned out to be beneficial to both parties.
The demand for valuation is acute given that Dubai’s residential rents have increased by 20–25 percent since mid-June 2021. Only a small number of places were able to experience a less abrupt rise. However, market sources claim that even their rents have been rising recently.
Index of Rentals
Landlords who feel that the Dubai Rental Index doesn’t accurately reflect the changes the market has undergone in the last two years will find the Land Department valuation service to be very useful. They claim that the Index points are still stuck at rates similar to those of 2018–19.
Therefore, a valuation of the current ideal rent helps landlords request a reasonable increase during lease renewals, according to a source in the market. The service offered by the Land Department provides the equilibrium that the rental market requires. Once the valuation is complete, the revised rent will serve as a sort of neighborhood benchmark.
The long-standing Renting Disputes Centre and the valuation service reinforce DLDS’s position as the authority on rental disputes. As Dubai undergoes the fastest growth of rent increases since 2016–17, there is still a rush to have decisions delivered by the RDC.
As per market, “The valuation service primarily applies to real estate with active leases.” Because, if the apartment is brand new, the homeowner can set a rent that he believes is in line with current market trends. However, always exists the possibility of disagreements over the revised rental rate for existing leases. The DLD’s valuation aids in quickly settling the matter. This is something that more tenants and landlords in Dubai are discovering.