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17 July 2024

Rera and property firm's rates vary by 11%


By Parag Deulgaonkar

The rents detailed in the Real Estate Regulatory Agency's (Rera) residential index vary an average 11 per cent from current numbers compiled by a property services firm, a comparative study by Emirates Business has revealed.

Rents for the first quarter of 2009 compiled by Asteco and the average of Rera's residential rental index show differences in most localities and categories.

According to Asteco, studio apartments in Discovery Gardens can be leased for Dh62,100 per year, one-bedroom for Dh90,000 and two-bedroom for Dh121,500. Rera's index puts the rents at Dh72,500, Dh100,000 and Dh137,500, respectively. Rents for three-bedroom apartments in The Greens are 29 per cent higher than market rates, according to the index. The four-bedroom villas on The Palm are available for Dh495,000 compared to Rera's Dh450,000.

Mohammed Khalifa bin Hammad, Director of Rera's real estate relations regulatory department, told Emirates Business the rents have been based on a detailed analysis and in consultation with top property companies.

Asked if the tenants could approach the Rent Committee for reduction of their rents if they were paying more than the index value, Bin Hammad said: "That is not possible. We can arrange a meeting between the landlord and the tenant."

According to Andrew Chambers, Managing Director of Asteco, the index is more scientific and much more detailed than the rent cap.

"Although there could be a cross-over between our figures and theirs, the revised versions of the index will become more transparent and realistic," Chambers said.

Analysts said as more landlords start registering their contracts on Ejari.com, the online tenancy registration system, the index will increasingly reflect market reality.