New standard Dubai rent contracts in 2014

Published Monday, September 23, 2013

By Staff

Dubai intends to control increases in rents within reforms in the real estate sector that is expected to see a boom in the next period following plans to set up a landmark rent dispute resolution centre, an official was reported on Monday as saying.

Sultan bin Mijrin, Director, Dubai Land Department, said a new standard rent contract would be enforced in late 2014, adding that the real estate sector in the Gulf’s business hub is on the verge of a boom period.

In an interview with the Dubai-based Arabic language daily Emarat Al Youm, bin Mijrin was asked whether the department intends to enforce a ceiling on Dubai rents.

“The department is closely monitoring changes in the real estate and rent sector. There will be a continuous review of any increase in rents.

“We also intend to introduce significant changes to the rent index to the results will be more accurate and offer a real indicator of the market. This index will be compulsory to all,” he said.

Bin Mijrin said a new unified rent contract would be enforced towards the end of 2014 within a new mechanism for the emirate’s property sector.

“There will be three main legislations that will be issued in the first quarter of 2014. They cover the relationship between the landlord and tenant, regulation of the relationships in the real estate sector and a mechanism for rent disputes,” he said.

Bin Mijrin said a decision to set up a rent dispute resolution centre in Dubai would largely boost the property market in the medium and long term.

“The market now needs a judicial mechanism for settlement of rent disputes and the development of a simple and quick formula for all parties to the sector. This, of course, will positively affect sustainable development in the emirate,” he said.

“The centre will push the rent sector into a new developed stage and support investment activities in this field.

“This centre will work to sharply cut time needed to settle disputes and there will be a judge to ensure immediate implementation.”

He said the centre would conduct what he described as a comprehensive review of fees involved in rent disputes, adding that “they would be fair to all parties.”