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Dubai Rera's revised rent calculator may trigger rent hikes and market dynamism
三月 7, 2024
Dubai Rera's revised rent calculator may trigger rent hikes and market dynamism 迪拜
By   Internet
  • 城市報
  • Dubai Property
  • Dubai Property Market
  • Rent Calculator
  • Rent Increase
Abstract: Dubai's real estate market has always been under scrutiny, and the recent revision of the rental calculator by the Dubai Real Estate Regulatory Authority (Rera) may have significant implications for residents and landlords.

According to industry executives, due to rent adjustments in certain areas, rents are expected to increase by 10% to 20% in the short term. This news has sparked widespread attention and discussion across society.


Richard Waind, CEO of Betterhomes, stated that the Rera calculator was updated on March 1st, aligning future renewals more closely with current rental levels in the open market.


The revised calculator will provide guidance to landlords and tenants on potential rent increases upon renewal based on benchmark rents in each community. However, this change may significantly impact tenants who have been residing for over two years, as they may face larger rent increases upon renewal.


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khaleejtimes


In an interview with Gulf News, Waind stated, "The revised calculator may prompt some tenants to consider moving or downsizing, while for others, it may lead them to decide to purchase property." This impact may be more pronounced in areas where rents have increased significantly over the past two years, such as central villa districts and beachfront apartment areas.


Industry insiders indicate that rents may increase by 10% to 20% in the short term due to rent adjustments in certain regions. While short-term rent increases may bring economic pressure to some tenants, Waind believes that the revised calculator will help stabilize rents in the long term.


He explained, "The previous calculator resulted in updated prices that were significantly different from the open market, meaning minor market changes. Rent increases may foster market vitality, especially in sought-after villa communities, potentially increasing more residential supply and slightly reducing rental levels in the open market."

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Dubai Rera's revised rent calculator may trigger rent hikes and market dynamism
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