In Dubai, landlords can still request a rent re-evaluation from the Real Estate Regulatory Authority (RERA) to ask for higher rent instead of following the recently updated Rental Index. However, the process for requesting a re-evaluation has been altered starting this month.
According to Anisha Sagar, director of property management at Allsopp & Allsopp Group, starting from April 1, 2024, landlords must now provide a judgment or legal order when applying for the rent evaluation service. This is a change from the previous practice where landlords could simply pay a fee to the Land Department for rental valuations.
RERA updated its Rental Index in March 2024, enabling landlords to raise rents in line with the increase in rentals. The RERA calculator is now the only tool for calculating rental increases. In the past, landlords could request a rental evaluation to adjust the current market benchmark set by the outdated calculator.
With the updated calculator, landlords cannot raise rental prices beyond the benchmark provided on the RERA calculator. This change aims to provide greater transparency and reliable insights to tenants.
Sagar mentioned that in the first quarter of 2024, a total of 72,885 rental contracts were renewed, involving 145,770 decisions made by tenants and landlords.
"With such a large volume, it's logical for the Rera calculator to be the main reference point. Introducing these legal requirements ensures that changes in valuation are reviewed fairly against the updated calculator,"
she explained.
The number of rental contract renewals has decreased by 7.2% compared to the first quarter of 2023 when there were 78,565 renewals. This decrease could suggest that more tenants are opting to buy homes in Dubai, especially considering the continuous rise in rents over the past year.
News Source: Khaleej Times
