Dubai landlords now need a court order for rent re-evaluation. Instead of relying solely on the Rental Index, they can still approach the Real Estate Regulatory Authority (RERA) for higher rents.
Starting April 1, 2024, landlords must include a legal judgment when applying for rent evaluation, informs Anisha Sagar, property management director at Allsopp & Allsopp Group.
Ensuring Fairness and Transparency in Dubai’s Rental Market
Previously, landlords could pay a fee to the Land Department for rental valuations. However, RERA’s March 2024 update restricts rent increases beyond the RERA calculator’s benchmark, ensuring more reliable information for tenants.
In Q1 2024, 72,885 rental contracts were renewed, totaling 145,770 tenant and landlord decisions. This shift towards the RERA calculator as the primary valuation tool, along with legal requirements, ensures fair assessment against updated standards.
With rental renewals dropping by 7.2% YoY in Q1 2023, despite rising rents, it suggests tenants may be considering property purchases in Dubai.