Vice President and Prime Minister of UAE and Ruler of Dubai H.H Sheikh Mohammed bin Rashid Al Maktoum has issued, in his capacity as Ruler of Dubai, Decree No. 2 / Year 2011 capping the increase in the property renting in the emirate, reports the official news agency WAM.
Article 1 of the new decree sets the rates of maximum rent increases on properties leased out before its enforcement and varies according to the rental values.
- Increases can only occur if the property was more than 25 per cent below the average index price.
- If the rent was 26 per cent to 35 per cent less than the average rent for a similar property, the maximum increase shall be equivalent to 5 per cent of rent value.
- If the rent was 36 per cent to 45 per cent less than the average rent for a similar property, the maximum increase shall be equivalent to 10 per cent of rent value.
- If the rent was 46 per cent to 55 per cent less than the average rent for a similar property, the maximum increase shall be equivalent to 15 per cent of rent value.
- If the rent was 56 per cent to 55 per cent less than the average rent for a similar property, the maximum increase shall be equivalent to 20 per cent of rent value.
Article 2 of the decree endorsed the Real Estate Regulator Authority (RERA) rent index as the main reference to determine the average rent in the emirate.
The decree came into force from the date of its issuance on 10th January 2011 and will be published in the official gazette.
