Not a regulation, but a guideline
The Real Estate Regulatory Authority (Rera) unveiled a new rental index, which shows residents average rental prices they can expect to pay for villas and apartments in different areas of Dubai, reported Khaleej Times.
The long-awaited index will set the limit at which landlords can rent property at in each area.
It will replace the previous system whereby the government set an annual rental cap on the amount through which rent can be increased.
Rera will constantly update this rental price index to match market factors and changes and serve as a measurement to show to the general public a fair price for each unit. It will be used by developers to evaluate the rent income of the projects and the feasibility studies.
The system works by properties being given points for attributes such as building facilities, nearby retail outlets, as well age and condition of the building. The points are then used as a statistical base to set a minimum average and maximum average rent price.
