Rents In Dubai Rise By 25%, Prompting Landlords To Seek RERA Assistance In Justifying Higher Rent Demands.
More landlords and tenants are attempting to reach an agreement on rent increases during renewals. Because of the more than 25% increase in Dubai’s residential rents. To determine whether they are qualified to request an increase, landlords are turning to the RERA (Real Estate Regulatory Agency) Asset Value Certificate. RERA representatives perform the necessary service and make recommendations regarding whether or not the demand is justified. Property owners can ask their tenants—typically the current ones—to sign up for the new lease if the rent for that land or building is increased.
However, tenants continue to use the RERA Rental Calculator to try to persuade their landlords. That a higher rent is not necessary given the rising cost of living. This is what causing the conflict between the two methods for figuring out rent and rent increases. The RERA rental index is still applicable for rental renewals, infect that some landlords are using the rental valuation certificate. To raise rents during renewals until RERA formally announces that the renting valuation certificate supersedes the RERA rental index, according to Prathyusha Gurrapu, from real estate consultancy.
RERA Leasing Index
RERA has specified renting ranges in a number of areas impact renewal contracts. Only these ranges uses by landlords to increase rent in a renewed lease. If you pay less than the minimum range, the landlord may increase your rent by a certain percentage. Based on the discrepancy between the amount you actually pay and the area’s rental index. Landlords do not allow increasing rent after tenants pay this amount or more.
These ranges have no bearing on new leases. A landlord may quote rents for new tenants that are significantly higher than these ranges. The calculator only influences local rental price increases for tenants who want to renew their leases. The majority of Dubai’s districts have seen over 25% increases. So the affordability of rent effects and tenants’ concerns are growing.
Many tenants are turning to the RERA rental calculator to protect themselves from such increases. While landlords who have been in a downturn for a while are pushing for rent increases during renewals. In addition, as a last resort, tenants and landlords keep bringing cases to the Rental Disputes Settlement Centre at the Dubai Land Department in the hopes that the verdicts will be in their favor. Apartment rents have increased by 26% over the past year to September, while villa rents have increased by 28%.