The season is up for lease renewals in Dubai and RERA came out with new rental index in line with market slump. The rents have dropped to less than half in last 4 months in many places and average rent drop is about 17% from peak.
Landlords have been using earlier RERA index to further increase the rents in these difficult times too, new index is just in time for many to save those additional outflows and make their ends meet.
Only thing missing is what happens with people who rented at peak level? There is no clear guideline on decrease in rents to market levels by landlords. While I spoke to RERA, they emphasised on the fact that landlords should reduce to rental index level and if they don’t then it can be put forth to rent committee.
One can check for maximum increase allowed on present rent through RERA provided rent increase calculator on their website. You can access it through http://rpdubai.ae/rpdubai/rentals/rental_increase_calculator.do?lang=0