The Real Estate Regulatory Authority (Rera) index for Dubai has been updated and is likely to impact tenants who have been living in properties for over two years.
The revised rents calculator left landlords happy and tenants sad.
Khaleej Times quoting Richard Waind, CEO of Betterhomes, reported that Rera calculator was updated on March 1 that explains how much rent on renewal can increase based on a benchmark rent for each community.
Experts anticipate particular central villa communities and waterfront apartment communities will be most affected.
Industry experts noted that the rents could go up between 10 to 20 per cent in the near future due to the revision in certain areas. Contrary, revision in the calculator could help bring down rents in the long term.
As per Dubai Rental Report 2023, Dubai’s rental market has witnessed a significant increase in rents and activity in the past two years, ending the negative growth cycle that began in mid-2015 and lasted until late 2021. In the year to July 2023, we have seen average rents in Dubai increase by 22.0%. In the year to date to July 2023, the total number of tenancy contracts reached a total of 325,727, a 43.5% increase from the 227,011 contracts registered in the same period in 2019.
