Rent rise in 2009 subject to 2008 contract value

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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