5% rent cap in Abu Dhabi still effective, official says

Abu Dhabi: The 5 per cent rent cap imposed in Abu Dhabi in 2008 is still effective and will remain valid until the new rent cap for this year is announced, a senior official told Gulf News here.

"All rent disputes [now] are dealt with [in keeping with] the 5 per cent rent cap of 2008", said Mohammad Rashid Al Nuaimi, head of the Rent Dispute Settlement Committee.

About 145 cases of rent disputes filed this year [until January 18] will be decided in accordance with the 5 per cent rent cap, he explained. "About 7 to 10 cases are filed every day. We have to wait for the government decision on a new rent cap" said Al Nuaimi.

The government of Abu Dhabi had reduced the annual rent cap from 7 per cent (of 2007) to 5 per cent in 2008 in an effort to control the escalating housing crisis in the emirate. The Abu Dhabi Executive Council had issued the decision on January 13, 2008, with immediate effect.

Al Nuaimi said the committee received lesser number of complaints in 2008, than in 2007. "About 3,078 complaints were filed in 2008, whereas the number of complaints was 4,937 in 2007," he said.

Meanwhile, a senior official at the Abu Dhabi Chamber of Commerce and Industry(ACCI) told Gulf News that rents in Abu Dhabi are unlikely to increase further.

"The rent may not fall soon because it will take time to fix the shortage of housing [units], but I can say that at least it [rent] will not increase," said Khalfan Al Ka'abi, chairman of the construction committee at ACCI.

Al Ka'abi further said the completion of construction projects in the capital will not be affected by the financial meltdown.

"Some work may slow down & like if you are travelling at 200 miles per hour, you may have to reduce the speed to 60 or 80 miles per hour [at some point], but no project has been stopped," said Al Ka'abi.