| 01 Apr 2009 |
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Dubai Rera Delays Rent Index Update
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DUBAI - The Real Estate Regulatory Agency (Rera)Real Estate Regulatory Agency (Rera)
has delayed publishing an updated index of rents for Dubai, due in April, because of delays in gathering data. An agency spokesperson said the index would now be published at a later date, after a survey to be carried out sometime in summer.
Dubai's first rent index was issued in January, aimed at providing more transparency to the rental market and to replace a rent cap issued annually.
The January index reflects figures from the latter half of 2008 when rental prices were at their peak. It has drawn fire from real estate agents and residents alike for giving numbers way above averages in the market today.
The updated index was expected to help tenants by providing a more accurate picture of average rent prices. A spokeswoman for the authority said that data was not available yet. "It is not ready at the moment, but they are working on it," she added.
According to another ReraRera
official Karim Awwad, a new survey will be carried out on the market in the summer. "We are not making any changes to the existing figures, we are just going to be updating the areas that were not mentioned in the last index," he was quoted as saying by AME Info. Vincent Easton, an independent property analyst, said that ReraRera may be trying to draw a more accurate picture of the market. "They got a lot of bad press last time they released the rent index so they might just be waiting now to see if they can get it right this time."
Speaking in February, CEO of ReraRera Marwan bin Ghalita said that rents had fallen by up to 50 per cent in some areas of Dubai from figures published in the index. "If we needed to replace the current rent index we needed an alternative. The new rent index should be released by April but it could be sooner," he said at the time.
Further, he had said that the new index will be populated by figures from the Ejari website -- through which estate agents have been required to register new contracts.
According to industry insiders however, there has been a low take up of the scheme, which could explain the delay.
© Khaleej Times 2009
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Community Comments (7)
These building owners and landlords should be named and shamed. You should post them on Newspapers, complain at the Rera (if they are hopefully going to do something for a change) and then send and official letter to your owner demanding a decrease rather than an increase.
It is just despicable when govt authorities have announced that rents in Dubai are going down, how can such landlords be so oblivious of the matter.
No one said a word when the prices were raising up in Dubai and everything was getting expensive (including rent) and these landlords started targeting higher rents.
Now when they are pluming down why the sadist approach???????
I stay in one of the buildings in Al Ghusais (Near Emirates Driving institute) and the Landlord is requesting for an increase of 10%. The rent was increased by almost 10% in previous year, and again landlord has sent a renewal notice of 10% increase this year. Is there any way to stop landlord from this increase. Is this the result of Rent Index?
Rera has failed to think out of the box. What was a very amazing idea has become a massive confusion.
I am taken back to Mid 2007 when every developer and brokerage was asked to register their properties and companies with Rera and no doubt that was a very good thought but what they did was a little amateurish. They acted a little too fast and started coming out with conclusions of there own when it comes to the law.
Every single law or article that gets passed has millions of speculations behind them and what Rera should do (rather than trying to play a judges role which is very easy after looking at everything through the same microscope) is to clarify those laws to the layman.
Every investor in Dubai is in a state of pure confusion and these consumers have the right to know exactly who to approach in case a certain scenario comes up.
The property industry is a 10 year old industry in Dubai and Rera has to physically cross it 3rd year. Unless this REGULATORY authority does something concrete rather than passing Press Releases there isn't much to look forward to in the near future.
The rewind button isn't going to press on its own. I would rather see Rera's gentlemen/ ladies to sit amongst each other and then with erudite people within Dubai's economy to find out ways to come up with such changes.
Think out of the box as I said.
It is said - if you dont have anything to say, keep your mouth shut. If it is going to take so long to come up with the updated index, how long did Einstein work on the last one? If that was the result, doesnt it reflect on the compentence.
These indexes coupled with some property firms are not allowing the market to follow its natural course. Most of the investors are being misled into making decisions (or maybe deferring the same) based on these opinions.
As Mr. Siddiqui put it nicely, RERA's role is to regulate. Wish to see more progress on that front
In my opinion, the official business of RERA is issuing statements. Probably, only such department is this universe.
I really fail to understand why do we give RERA so much credit?
It is just one more authority which will soon be closed because the federal govt policies will definitely take over.
I would never take them too seriously, specially when people come up with answers like, "RERA will decide over matters" or "the judgment is in the hand of RERA"
RERA is not a court nor a rule maker, they are supposed to be regulating the laws and not passing judgments.
As for the rent index update, Whats the point of such index anyways. If 10 building at a certain zone have 9 who charge 100k /year and just 1 which charges 75k / year. Property owners will average it out and say that a certain apartment in a certain zone will cost 97,500 /year.
Confusion will then erupt over the amount of cheques, and no more seriousness.
Its a mystery where RERA is collecting their information from. As a landlord who has recently leased a property through a prominent local brokerage, I can confirm that the broker has not been required by RERA to provide the lease information to them. If the data collection is from Gulf News Property section, it is not going to succeed in regulating the market. I would be interested to know if anyone has successfully managed to provide lease info through the online Ejari ?
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