As Dubai records more rent gains, Index provides clarity for lease renewals
Dubai: The Dubai Rental Index has been updated to reflect the recent increases on residential rentals in the city, allowing landlords and tenants better clarity through the whole leasing process. This applies more to existing leases getting renewed, which means there is less stress for landlords and tenants alike.
But on leases featuring new tenants, landlords have greater flexibility on what they can demand. This is where potential tenants are facing demands anywhere from 20-30 per cent above what they are paying, as landlords try to make maximum use of sustained demand chasing fast depleting options. In some of the more sought after residential locations, occupancy levels after summer could drop well below 10 per cent, say estate agents.
On rental hikes, landlords wanting to increase more than the average for a particular location can make a submission with the authorities. “We understand the Dubai Rent Dispute Settlement Centre (RDSC) allows landlords to apply for rental valuations of their properties on a case-by-case basis,” said Manali Sangoi, Associate at the law firm Hadef & Partners.
“In (some) instances, we understand the RDSC permits rents to be increased to the valuation identified in the rent valuation certificate procured by the landlord. This may go beyond the amount stated in the Index, but provided that a 90-day prior notice for rent increase was served by the landlord. We have asked the RDSC to clarify this.”