Tuesday, May 12, 2009
Gulf News
Dubai: The much-talked about rental calculator on Dubai's Real Estate Regulatory Authority (Rera) website is the new rental index, senior officials at Rera confirmed to Gulf News on Monday.
There has been much confusion in recent weeks regarding the rental index. The original rental index came out at the end of 2008 but the rates were based on mid-2008 rates and were therefore unrealistic.
A revised index was due in end-April but nothing more was heard, until the rental calculator which was installed, unannounced, on Rera's website.
However, Marwan Bin Galita, Chief Executive of Rera, said that the rental calculator is in fact the new rental index.
"It's good. It is more trusted. If a dispute, from January, comes to the Rent Committee it will be based on the existing index, not the previous one. Landlords and tenants, especially landlords, should look at the situation now," Bin Galita clarified.
Contracts signed from January to March and also previous contracts have all been taken into account.
The calculator index was compiled using data from the Ejari website, discussions with agents and management companies, checking listings and site surveys.
Rents are easing across the board opening up opportunities for people previously priced out of the market.
Villas in sought-after Arabian Ranches can now be found for as low as Dh95,000 for a two-bed and Dh100,000 for a three-bed.
The average rent for a studio in Dubai Marina is now Dh65,000 to Dh75,000. This figure was Dh80,000 to Dh90,000 in the first rent index, representing a difference of 17.6 per cent.
A one-bedroom apartment in the Greens now has an average rent of Dh90,000. Previously, it was Dh110,000 to Dh130,000, representing a saving of Dh20,000.
The next index or calculator will hopefully come in September, once the summer is over.
Rera are also to share their extensive database with Ajman's Real Estate Regulatory Agency (Arra).
"It will unify with the federal laws if we share the same database. It will unify the database for developers and agents. Agents in Ajman wishing to market in Dubai must be registered with both (Rera and Arra)," Bin Galita said.
Previously, agents in Dubai could market in Ajman without being registered there and vice versa. Now, this practice will no longer be allowed, with agents having to be registered in both emirates if they want to market in both Ajman and Dubai.
Gulf News 2009. All rights reserved.
