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29 March 2024

Mohammed issues rent control decree

Mohammed issues rent control decree. (GETTY IMAGES)

Published
By Wam

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, in his capacity as the Ruler of Dubai, yesterday issued a decree setting the maximum allowed increase in property rent values in 2010.

The decree comes as part of Sheikh Mohammed's keen interest in ensuring stability of Dubai's property market as well as creating legislations that guarantee landlord-tenant relationship.

The decree approves Real Estate Regulatory Authority's price index, which will be the reference for setting any rise in rent values in 2010.

The decree prevents any increase in rent values as long as they are less by a maximum of 25 per cent than the average rents of properties of similar specifications. The maximum allowed increases will be: 

- Five per cent if the rent value is 26 per cent to 35 per cent less than the average rent of properties of similar specifications

- 10 per cent if the rent value is 36 per cent to 45 per cent less than the average rent of properties of similar specifications

- 15 per cent if the rent value is 46 per cent to 55 per cent less than the average rent of properties of similar specifications.

- 20 per cent increase if the rent value is 55 per cent more than the average rent of properties of similar specifications.

The decree also defines a new formula for lower rent values – rents will rise in proportion with the drop in 2008 rent value in the average annual rent for the same property.

 

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