Rera said no need to put the rental cap in 2009

[Kind]

Rera chief executive says rent caps are not needed 'in a tough year'
By Suzanne Fenton, Staff Reporter
Published: January 13, 2009, 00:01


Dubai: A rent cap is not needed this year, Marwan Bin Galita, chief executive of Dubai's Real Estate Regulatory Authority (Rera),told Gulf News.

Many tenants in Dubai are still confused that no rent cap for 2009 has been announced. While the cap for 2008 was set at five per cent, this was due to run out at the end of last year.

Since then, nothing more has been said on the issue.

However, Bin Galita told Gulf News yesterday that in his opinion, no rent cap is necessary in 2009.

"We don't need a rent cap this year. We need to freeze everything. 2009 is a tough year and we shouldn't interfere with rents too much," Bin Galita said.

Bin Galita also said rental rates should be fair to both landlords and tenants.


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Things are freeing up in Dubai's rental market, with many landlords accepting more than one cheque, a nice change from the wallet-squeezing one-cheque policy. Market analysts say rents in Dubai could begin to decline in the third quarter of this year.

"We need to carefully watch the situation. If there are more lay-offs, then certain number of families are expected to leave the country," an analyst told Gulf News, requesting anonymity.

"On top of that, more than 32,000 housing units will be supplied this year, which will help soften the market."

Bin Galita also said Rera and the land department are working towards a more specific complaint system, instead of the Rent Committee being responsible for everything.

The property court, already operational in Dubai, does not deal with rental disputes.

"We need one real estate tribunal for Dubai," Bin Galita said.

In line with this, Rera has a plan in place to establish a property agents committee, a developers committee and an evaluators committee in 2009.

Rera also recently created Ejari, an online tenacy contract registration site where agents and landlords must register all contracts.

This will finalise the rental index, which Bin Galita stresses is intended only to be an indication of rental rates across Dubai, not an enforcement of rental rates.

 

[georgihh]

Rera chief executive says rent caps are not needed 'in a tough year'
By Suzanne Fenton, Staff Reporter
Published: January 13, 2009, 00:01


Dubai: A rent cap is not needed this year, Marwan Bin Galita, chief executive of Dubai's Real Estate Regulatory Authority (Rera),told Gulf News.

Many tenants in Dubai are still confused that no rent cap for 2009 has been announced. While the cap for 2008 was set at five per cent, this was due to run out at the end of last year.

Since then, nothing more has been said on the issue.

However, Bin Galita told Gulf News yesterday that in his opinion, no rent cap is necessary in 2009.

"We don't need a rent cap this year. We need to freeze everything. 2009 is a tough year and we shouldn't interfere with rents too much," Bin Galita said.

Bin Galita also said rental rates should be fair to both landlords and tenants.


--------------------------------------------------------------------------------


--------------------------------------------------------------------------------


Things are freeing up in Dubai's rental market, with many landlords accepting more than one cheque, a nice change from the wallet-squeezing one-cheque policy. Market analysts say rents in Dubai could begin to decline in the third quarter of this year.

"We need to carefully watch the situation. If there are more lay-offs, then certain number of families are expected to leave the country," an analyst told Gulf News, requesting anonymity.

"On top of that, more than 32,000 housing units will be supplied this year, which will help soften the market."

Bin Galita also said Rera and the land department are working towards a more specific complaint system, instead of the Rent Committee being responsible for everything.

The property court, already operational in Dubai, does not deal with rental disputes.

"We need one real estate tribunal for Dubai," Bin Galita said.

In line with this, Rera has a plan in place to establish a property agents committee, a developers committee and an evaluators committee in 2009.

Rera also recently created Ejari, an online tenacy contract registration site where agents and landlords must register all contracts.

This will finalise the rental index, which Bin Galita stresses is intended only to be an indication of rental rates across Dubai, not an enforcement of rental rates.

I think they should put rent bottom for 2009

 

[PropGuy]

i think they should put rent bottom for 2009

rofl

------------------------------------------------​

 

[zombie]

Another week PR attempt to show the investor that they care.

 

[BobbytheBuilder]

How does the No Rental Cap in 2009 work, if I have a tenant in MY APARTMENT paying below market rent because of some stupid law.Say for example the tenant is paying 60,000AED per year,can I now charge him 80,000AED per year in 2009 because there is no Renatl Cap.

 

[georgihh]

How does the No Rental Cap in 2009 work, if I have a tenant in MY APARTMENT paying below market rent because of some stupid law.Say for example the tenant is paying 60,000AED per year,can I now charge him 80,000AED per year in 2009 because there is no Renatl Cap.

You can but they will move out as they can get the same flat for less

 

[aveshbachav]

i think increase of maintenance charges by 10% forces us to increase rents

 

[naxal]

For georgihh

You can but they will move out as they can get the same flat for less

Currently the rents aren't falling so perhaps your theory won't work ................... BUT being a tenant ,NOT A LANDLORD ,I'm also confused like Bobby about this new Rera's statement .

If my rent increased in 2008 according to the rental cap of 5% ,then pls clearify this ........ (as far as I know) ,in 2009 the landlord CANNOT increase it this year because according to the law ,the increase of 5% is only allowed every two or three years >>>>> ISN'T IT ???

 

[BobbytheBuilder]

It was a total disgrace when they capped the rent. There are loads of tenants laughing all the way to the bank with this rubbish law.

 

[georgihh]

Currently the rents aren't falling so perhaps your theory won't work ................... BUT being a tenant ,NOT A LANDLORD ,I'm also confused like Bobby about this new Rera's statement .

If my rent increased in 2008 according to the rental cap of 5% ,then pls clearify this ........ (as far as I know) ,in 2009 the landlord CANNOT increase it this year because according to the law ,the increase of 5% is only allowed every two or three years >>>>> ISN'T IT ???

Prices are down 20% for rental for the last six months
and 35% to purchase from the peak.
For example one bedroom September was 80k-85k now 65k-70k
Or 750k-800k now 550k

 

[BobbytheBuilder]

Prices are down 20% for rental for the last six months
and 35% to purchase from the peak.
For example one bedroom September was 80k-85k now 65k-70k
Or 750k-800k now 550k

Georgihh you seem to be all doom and gloom on I.C but have recently offered to buy my 1 bed apartment for 480K. I think your doom and gloom has a hidden agenda.

 

[georgihh]

Georgihh you seem to be all doom and gloom on I.C but have recently offered to buy my 1 bed apartment for 480K. I think your doom and gloom has a hidden agenda.

I offer you 460k but I suggested you try 550k.
Never mind I am also trying to sell so I can’t buy at the current price need to make some profit.
I don’t know what will happen but looks like the prices are going down.
No action for help to stabilize the market from the government we don’t know where we are?
Looks like nobody is interest of doing something - very strange.
I don’t know about you but I am stacked in Dubai and can’t get rid off all my assets.
Finally keep on trying selling your property you never know where the buyer will come from

 

[naxal]

georgihh

My actual doubt is still left unanswered :

If my rent increased in 2008 according to the rental cap of 5% ,then pls clearify this ........ (as far as I know) ,in 2009 the landlord CANNOT increase it this year because according to the law ,the increase of 5% is only allowed every two or three years >>>>> ISN'T IT ???

 

[zombie]

NO.

Any increase in rent is not allowed only in the first 2 years, thereafter rents may be increased as per the cap provided for that year. There are no provisions as yet "that if rent was increased last year as per the rent cap, the landlord cannot increase for this year"

After 3 years, the landlord may ask the special committee to allow to increase the rent in accordance to market values.

Please check on the RERA website & specifically Decree No. 27 of 2007 & Law No. 26 of 2007 to check the specifics of Landlord Tenant relationships & Rentals in the emirate of Dubai.

 

[naxal]

I just cannot imagine how many geeks are we surrounded by .Reading this article confirms the type of people in this law system :
Gulfnews: 5% rent cap remains in force, says official

Why is there a conflicting statement given by them .............. One says No Rent Cap ,the other says 5% Rent Cap !!!!!!!!!!!!!!!

AND believe me ,at this point of time on 14/1/09 ,rentals are practically not falling (I don't have faith in public surveys ,media reports ,etc. )

 

[Roshan]

What rent cap. The whole thing is an eye wash. Landlords are still having their way.

I have lost faith in these announcements. Each one to himself...and GOD for all.

Regards

Roshan

 

[Roshan]

Ha! Ha!...the business of newspapers is to sell paper. If theyb don't have crap to print who will buy.

My eyes always roll out to the Gulf News business section to see what they project...good or bad.

Roshan