Dubai landlords, accustomed to seeking higher rental amounts from the Real Estate Regulatory Authority (RERA), are now subject to a new protocol for rent revaluation as of April 1, 2024. Anisha Sagar, director of property management at Allsopp & Allsopp Group, elucidated that this procedural shift necessitates landlords to furnish a judgment or court order alongside their application for rent evaluation services.
New Protocol for Rent Re-evaluation
Previously, landlords could opt for a rental valuation service by remitting a fee to the Land Department. However, the recent update mandates landlords to adhere to the revised procedure. The latest measure, introduced by RERA, reflects a departure from prior practices.
RERA’s Rental Index Update
In March 2024, RERA unveiled its updated Rental Index, offering a mechanism for landlords to adjust rents commensurate with the surge in rental rates. The recalibrated index aims to provide a more accurate reflection of prevailing market conditions.
RERA Calculator: The Sole Benchmark
The revised RERA calculator serves as the sole reference point for determining rental increments. Unlike before, landlords are precluded from setting rental prices beyond the benchmark stipulated by the RERA calculator. This enhancement augments transparency in the rental market, affording tenants reliable information for informed decision-making.
Enhanced Transparency and Trustworthiness
An upshot of the new protocol is the bolstered transparency and trustworthiness in rental transactions. Sagar noted that during the first quarter of 2024, a total of 72,885 rental contracts were renewed, encompassing 145,770 decisions jointly made by tenants and landlords. The burgeoning volume of transactions underscores the need for a standardized evaluation mechanism, with the RERA calculator emerging as the definitive yardstick.
Market Dynamics: Tenant Trends
Notably, the number of rental contract renewals witnessed a marginal decline of 7.2% year-over-year, totaling 78,565 renewals in Q1 2023. This trend may signify tenants’ inclination towards homeownership amidst escalating rental prices in Dubai.
In essence, the implementation of stringent requirements for rent re-evaluation underscores RERA’s commitment to fostering fairness and transparency in Dubai’s rental landscape. Landlords and tenants stand to benefit from a standardized evaluation framework, engendering greater confidence in rental transactions.
Conclusion:
The recent procedural changes implemented by RERA signify a paradigm shift in Dubai’s rental landscape. By mandating landlords to provide court orders for rent re-evaluation and introducing a revised Rental Index, RERA aims to enhance transparency and fairness in rental transactions. The reliance on the RERA calculator as the sole benchmark ensures consistency and reliability, empowering tenants with accurate information. Despite a slight decline in rental contract renewals, the market dynamics indicate tenants’ preference for homeownership amidst rising rental prices. Ultimately, these measures bolster confidence and trustworthiness in Dubai’s rental market, fostering a conducive environment for both landlords and tenants. Contact US
