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Tenants want ceiling on rents to stay
Tenants in Dubai say a rent cap needs to stay in place to prevent landlords hiking rents.
- By Suzanne Fenton, Staff Reporter
- Published: 23:42 January 13, 2009
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Rent cap is not the answer for Dubai, industry analysts say
Rent cap is not the answer for Dubai, industry analysts say
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'Rent caps not needed' says Rera chief
Rera chief executive says rent caps are not needed 'in a tough year'
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5% rent cap remains in force, says official
5% rent cap will remain in force in Dubai, says rent committee official
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Residents complain of abnormal hikes
Residents complain of abnormal hikes
Dubai: Tenants in Dubai say a rent cap needs to stay in place to prevent landlords hiking rents.
Many tenants are worried that landlords will have the freedom to hike rents as high as they wish if no rent cap is announced for 2009.
Last year's five per cent rent cap remains in place until a new cap is announced for this year.
Marwan Bin Galita, chief executive of Dubai's Real Estate Regulatory Authority (Rera), had said he doesn't think Dubai needs a rent cap as 2009 will be a "tough year". However, a final decision is yet to be announced.
While many analysts and industry experts have said a rent cap is no longer needed in Dubai, tenants are concerned this gives landlords a golden opportunity to hike rents and line their pockets.
"Does this mean that the landlord can ask for a 25 per cent increase on the current annual rent and we tenants will have to pay?" asked Madhu in Al Qusais.
"A price freeze or reduction is required but this should be officially announced as a rent cap of zero per cent. But as Dubai is full of money-grabbing landlords, this will not be a reality and prices will still, in fact, rise," said another.
One tenant said Rera must make landlords freeze rents as 2009 is the "tenant-buyer market".
It is obvious that Rera must make an official announcement about a detailed and clear rent cap. "Rera's statements need to be stronger and it's essential for the tenants who are suffering with the exorbitant rents in Dubai," said a tenant.
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