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Tuesday, September 28, 2021

Rent hike: Dubai residents should not panic

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Inhabitants in Dubai confronted with an abrupt rent hike request shouldn’t freeze – they should initially check the RERA Rent Index to check whether the property manager is supported in requesting an expansion.

“Landowners may expand the rent just to levels as endorsed by the Law and dependent on the necessities set by RERA (Real Estate Regulatory Agency),” said Shishira Johny, Corporate and Commercial Associate at the law firm TLG.

For example, if the current rent being paid is 21-30 percent below the normal in a specific local area or neighborhood, the property manager is inside his privileges to request an increment of up to 10 percent on reestablishment. On the off chance that the current rent is 31-40 percent lower than winning rates, the proposed hike can go up to 15 percent.

For the present, the RERA Rent Index is as yet the best benchmark for occupants to ensure they are not confronting baseless requests. Presently, the Index gives a “expansive” normal of rents inside some of Dubai well known and arising neighborhoods. Over the most recent four years, the Index hasn’t been a focal factor in light of the consistent decrease in rents, with 2020 seeing drops of more than 10% in certain spaces.

Be that as it may, with Dubai’s property market beginning to see more activity, eventually this would ponder rents as well. Which is the reason the Index is again liable to figure noticeably.

Occupants in a portion of the upscale neighborhoods of Dubai – the Marina, Downtown and Business Bay – are indeed hearing discussion about likely increments when their next agreements are expected. A few structures inside these spaces have unquestionably seen increments or interest for a hike, particularly for duplex and three-room units.

A few occupants have revealed being approached to pay 20-25 percent more than they are at the present time… despite the fact that those regions are yet to perceive any increments on the RERA Rent Index.

That being said, inhabitants have different rights they can exercise. “In the event that the landowner needs to expand, he should serve adequate notification,” said Prathyusha Gurappu, Head of Research and Advisory at the property consultancy Core. “The notification period must be no under 90 days before the date on which the rent lapses.

“The greater part of the set up manor regions in Dubai are as of now seeing rent adjustment… or rent recuperation.”

 

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