Dubai Land Department (DLD) is working on introducing a new rental index that will track market rates with accuracy, Emirates 24|7 can reveal.
The new index will be an extensive one, which will take into account the view of a property unit, and facilities offered in a tower.
Currently, the Real Estate Regulatory Agency (Rera), the regulatory arm of DLD, updates the rent index every four months.
The current index only gives an average range of lease rate in a locality and does not consider any other features such as services or view, which plays an essential role in determining rentals in residential localities such as Dubai Marina, Downtown Dubai and Jumeirah Beach Residence.
In brief, rents are higher for apartments with Dubai Fountain view in Burj Khalifa, the world’s tallest tower, or more for apartments where concierge service is offered.
The differences generally originate when these factors (services, views, location) are not taken into consideration and the tenants tend to follow the rent index decision.
In Jumeirah Lakes Towers, for instance, prevailing rents are higher for apartments that are closer to the Dubai Metro station. Similarly, Discovery Gardens Zen buildings charge more rents due to their proximity to Ibn Battuta Metro Station and the mall.
It is compulsory for all rental/lease contracts in Dubai to be registered on Ejari since March 2010, making effective the provisions of Law No.26 of 2007 Regulating the Relationship between Tenants and Landlords in Dubai.