Rent rise in 2009 subject to 2008 contract value

(SUPPLIED)

Decree No.1 for 2009, governing rentals in the emirate of Dubai, has been issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, in his capacity as the Ruler of Dubai. The following are some of the main articles of the law.

ARTICLE 1

No increases in rents during 2009 for tenants of property units, whether residential and non-residential units, who are renewing rental contracts signed in 2008 if the rent value in 2008 was equal or less by a maximum of 25 per cent than the average rent of properties of similar specifications.

ARTICLE  2

Excluding from clauses of Article (1) of the decree, the percentage of maximum increase in the rent value of property units in 2009 for the tenants who signed their rent contracts in 2008 is determined as follows:

a) If the rent value in 2008 was less by 26 per cent to 35 per cent than the average rent of properties of similar specifications, the maximum increase is five per cent of the rent value.

b) If the rent value in 2008 was less by 36 per cent to 45 per cent than the average rent of properties of similar specifications, the maximum increase is 10 per cent of the rent value.

c) If the rent value in 2008 was less by 46 per cent to 55 per cent than the average rent of properties of similar specifications, the maximum increase is 15 per cent of the rent value.

d) If the rent value in 2008 was less by 56 per cent than the average rent of properties of similar specifications, the maximum increase is 20 per cent of the rent value.

ARTICLE  3

For purposes of the decree, the rent of properties of similar specifications means the rent value of a property unit according to the Dubai's index of determination of rents, which is applied in the time of the renewal of rental contract.

ARTICLE  4

1) The rent of properties of similar specifications is set according to the Dubai's index of determination of rents that is attached to this decree.

2) Rera shall regularly revise and modernise the Dubai's index of determination of rents.

ARTICLE  5

Rera, in co-ordination with the Judicial Committee, specialised in the settlement of disputes between landlords and tenants, shall draw up measures necessary to implement the clauses of the decree.

ARTICLE 9

2) The Judicial Committee shall set the rent of properties of similar specifications taking into consideration the criteria of determination of rent increase percentage which is determined by Rera, emirate's general economic situation, state of property, prevalent rent of properties of similar specifications in the similar real estate market in the same area, any prevalent legislations in the emirate with regard to the rent of properties and any other factors considered by the committee.


ARTICLE 13

For the purposes of renewal of rental contract, the landlord and tenant may, before the expiry of rental contract, modify any of the contract clauses or increase or decrease the rent value.

If they did not reach an agreement in that regard, the committee shall have the right to set the fair rent taking into consideration the criteria stipulated in Article (9) of the law.

ARTICLE 14

In case any of the rental contract's parties wished to modify any of the contract's conditions according to the Article (13) of the law, he shall inform the other party at least 90 days before the expiry of the contract unless the two parties agree otherwise.

ARTICLE 15

The landlord shall commit to deliver the property in a good state that enables the tenant to obtain the contracted benefits.

However, an agreement to rent incomplete property is allowed, provided the tenant completes it and make it in a state that enables him to obtain the meant benefits.

The agreement shall define the party who will bear the costs of the completion.

ARTICLE 25

1) The landlord may demand an evacuation of property by the tenant before the expiry of rental contract in any of the following cases:

a) If the tenant did not pay the rent or part of it during 30 days starting from the date of being informed by the landlord, unless the two parties agree otherwise.

b) If the tenant sublet the property or any part of it without getting a written permission from the landlord. In this case, the tenant and secondary tenant shall evacuate the property, and the later will have the right to obtain compensation from the tenant.

 

The rental values of residential apartments (Dh ‘000)

DEIRA

Areas

Studio

1 BR

2 BR

3 BR

Al Murar

40-50

55-65

65-75

…..

Ayal Nasir

40-50

60-70

70-80

…..

Al Daghaya

40-50

60-70

70-80

…..

Al Ras

40-55

65-75

75-85

80-85

Al Buteen

60-70

85-95

120-140

…..

Naif

40-50

60-70

70-80

…..

Al Baraha

40-50

55-65

65-75

…..

Al Muhaisna – Fourth

35-45

55-65

70-75

85-90

Al Warga – BLD

…..

65-75

85-95

140-150

Al Nahdah

45-47

65-75

85-95

100-120

Hor Al Anz

45-50

65-70

80-90

100-120

Al Qusais

45-50

75-80

100-110

120-135

Hor Al Anz – EAST

55-65

80-90

100-120

140-160

Abu Hail

45-50

65-75

80-90

100-120

Al Muteena

55-65

65-75

100-120

120-150

Al Muraqqabat

60-70

85-100

140-150

160-180

Al Rigga

60-70

85-100

140-150

160-180

Rigga Al Buteen

60-70

90-100

110-120

140-150

Mirdif

60-70

80-90

120-130

…..

Al Garhoud

65-70

90-95

125-135

…..

Port Saeed

55-65

80-85

100-110

…..

Al Sabkha

40-50

60-70

70-80

…..

BUR DUBAI

Areas

Studio

1 BR

2 BR

3 BR

4 BR

Al Souq Al Kabeer

45-60

75-80

85-95

125-135

…..

Al Hamriya

45-65

75-110

90-150

150-200

200-250

Al Jafeliah

45-50

55-65

75-130

110-170

…..

Al Badaa

45-50

60-90

75-110

…..

…..

Al Satwa

45-50

60-90

75-110

…..

…..

Al Hudaiba

50-60

65-85

90-150

130-180

170-220

Al Mankhool

60-85

90-120

115-170

150-200

170-220

Umm Hurair

60-80

80-120

110-160

150-200

…..

Al Karama

50-60

70-110

100-150

120-180

170-200

Oud Metha

70-80

95-120

120-150

155-180

…..

Trade Center 2

85-90

125-145

150-180

200-210

…..

Trade Center 1

85-90

125-145

150-180

200-210

…..

Al Barsha

60-85

80-120

100-160

130-170

…..

Al Refaa

50-60

65-85

90-150

130-180

170-220

Al Musalla

45-60

75-80

85-95

125-135

…..

 

 

The rental values of residential villas (Dh ‘000)

DEIRA

Areas

3 BR

4 BR

5 BR

Al Garhoud

200-240

220-280

280-320

Al Muteena

130-150

150-180

250-270

Hor Al Anz

120-140

160-200

220-260

Abu Hail

130-150

140-170

170-200

Al Wahaida

130-150

140-170

170-200

Al Tawar

160-180

170-200

200-240

Al Rashidya

150-170

160-190

190-230

Nad Al Hamar

160-190

220-240

290-320

Al Warga

150-180

210-230

280-310

Mirdif – complexes

150-180

190-200

220-250

Mirdif – individual

170-200

230-250

300-320

Al Mezhar

150-180

210-230

280-310

Al Khawaneej

150-180

210-230

280-310

Al Muhaisna – First

150-180

210-230

280-310

Al Qusais

120-140

150-180

200-220

Nad Shamma

150-170

160-190

190-230

BUR DUBAI

Areas

2 BR

3 BR

4 BR

5 BR

Al Jafeliah

100-130

120-150

140-170

160-200

Al Mankhool

105-135

125-250

220-350

300-450

Al Hudaiba

110-140

130-160

150-180

170-210

Al Quoz Residential

150-180

170-210

200-250

240-290

Al Badaa

150-200

170-220

210-260

250-290

Al Wasl

160-210

180-240

220-280

250-300

Al Safa

170-220

190-250

230-320

260-400

Al Manara

170-220

190-250

230-320

260-400

Umm Al Sheif

170-220

190-250

230-320

260-400

Al Barsha Residential

150-200

220-270

250-300

300-400

Jumeirah

240-290

250-280

340-410

380-450

Umm Suqeim

250-300

290-360

350-420

400-470

 

 

The rental values of freehold accommodation (Dh ‘000)

VILLAS

Areas

2 BR

3 BR

4 BR

5 BR

6 BR

Dubai Marina

…..

300-320

…..

…..

…..

Green Community

…..

270-280

350-400

390-400

440-460

Jumeirah Palm

…..

350-400

400-500

500-700

…..

Arabian Ranches

190-200

250-280

320-350

380-400

400-430

Jumeirah Islands

…..

…..

400-500

500-550

…..

Meadows

…..

300-320

330-400

420-500

…..

Springs

190-230

250-280

300-350

…..

…..

 

APARTMENTS

Areas

Studio

1 BR

2 BR

3 BR

4 BR

Dubai Tower/Downtown

110-118

125-165

150-260

280-320

330-350

Greens

80-90

110-130

168-180

200-260

280-320

Dubai Marina

80-90

110-150

150-180

220-300

280-400

International City

45-55

65-75

85-90

 

 

Green Community

80-90

100-120

140-150

240-260

 

Jumeirah Beach Residence

80-90

110-150

150-180

220-300

280-400

Jumeirah Palm

 

140-210

210-240

270-320

 

JLT

75-95

120-135

170-220

240-350

380-400

Arabian Ranches

 

 

 

 

 

Jumeirah Islands

 

 

 

 

 

Meadows

 

 

 

 

 

Springs

 

 

 

 

 

Gardens

 

90-95

100-115

130-140

 

Discovery Gardens

70-75

95-105

130-145

 

 

Dubai Investment Park

70-80

90-95

130-135

200-240

 

Dubai Financial Centre

130-150

170-190

230-280

280-320

 

Dubai Silicon Oasis

55-70

95-125

130-140

150-170

 

 Source: RERA/Emirates Business Research

 

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