Not happy with the cost of your rent? Well, some good news may be on the way!
In an effort to stabilize the real estate market, there’s a new draft law that is set to keep rents unchanged for a three-year period. The Dubai Land Department says that this will ensure that properties are valued fairly and ease disputes between renters and owners.
The Department says that if it gets approved, it will bring some stability to the real estate market and provide a clear picture of the value of properties in the emirate.
Guidelines Will Follow
If all goes according to plan, a government notification will be issued along with some guidelines. There is no specific date being mentioned so it seems like it’s just a waiting game for that approval to come through.
Speaking about the new law, the Department said through the Real Estate Regulatory Agency, that it aims to protect the rights of both tenants and owners:
“Fixing rent values for three years will reduce the number of disputes between landlords and tenants by painting a clearer and more consistent picture for both parties. The new law will help stabilise the market and boost trust in it, leading to a continuously dynamic real estate industry that Dubai is renowned for.”
The department added that details would be available later over whether this would only apply to new rental contracts or lease renewals.
New Law To Attract investment
According to the government website, it says that a fixed 3-year rent would encourage investments and basically increase the occupancy rate of properties in Dubai. It would also ensure that tenants need not move frequently due to rent increases.
Landlords may also have a clear idea of income that could be expected.
So what’s the downside of this?
A potential downfall of this new law would be that both parties may be unable to take advantage of market fluctuations and benefit from lower fees or a rise in charges. Weigh that up against price stability for the next 3 years, with continued challenges for the real estate sector as the world struggles to emerge from the pandemic.
I guess we will have to wait and see if this law gets approved!