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RERA to update rent index table to cap Dubai rental rates
Mar 03, 2011 by Sheikh Maroof
Recently RERA has announced that it would update Dubai rent index table after every four months to keep the rental values up-to-date which will also help in capping the rental rates. This action was taken against the Ruler?s decree of capping the rent rate in the emirate. RERA is the only benchmark from which rents in Emirates are measured.
Back in 2008 the same thing was in issue to cap the rental values and was to be updated after every four months but was delayed due to unknown circumstances. Now again RERA has issued the notice to update its rental indexes every four months to control the rent. This policy will greatly help the investors and tenants as they will be informed with the average rental values.
The policy of updating rent index table will also boost up the confidence level of investors and landlords as the investors will have the clear picture of official rental values of any particular property in Dubai. They will be able to compare the previous values and the current values of properties to estimate their profit on properties. When the rent index table was not updated investors were confused and hesitant to buy a property and rent it out because they were not sure about the rent they will get. Property agents and brokers on other hand always exaggerate the rental values to entice investors. This whole process ultimately created low confidence level and caused investors to fly away from Dubai.
The step taken up by RERA to update rent index table is a huge leap to ensure transparency and security in Dubai property sector which will make Dubai a more stable and mature market in the coming future. With updated rent index table there will be quite less chance of any ambiguity and confusion in the real estate market as all the rental values going up or down will be updated after every four months.