It was meant to be ready by March this year. But Dubai's Real Estate Regulatory Authority (Rera) decided to take its time and get what is likely to be the most-awaited index in Dubai, spot on.
Dubai Property Index will be now ready early next year, but Emirates Business has had an exclusive look at some of the elements defining the research – area rent bands and amenity weightages – that have already been decided.
Rera also has worked out a formula by which it calculates the correct rent for a flat or villa aimed at being a fair reflection of rates in the neighbourhood.
"The index will stop landlords exaggerating rents," Mohammed bin Hamad, Director of Rera's owners' relation regulations department, said. "Rera has defined the average annual rents for studios, one, two and three-bedroom apartments and compound and single villas." However, he said the index was not legally binding, but was more of an indicator.
The index will establish rents not only for a building but for each apartment within it. For example, flats that face a road or are bigger than others will command different rents than those that face a backstreet, are smaller or are on the corner of a building. Also, all contracts and registrations for both residential and commercial units would be entered into Rera's database at the beginning of next year.