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Dubai: Dubai's 15 per cent rent cap rule will be applicable until December 31 this year, said a senior official.
"The rent cap condition [which states ] landlords cannot increase rents of residential and commercial units by more than 15 per cent will be valid until end of this year," said Mohammad Al Shaikh, General Secretary of the Dubai Rent Committee.
He said the committee so far has no instructions whether the same rent increase restrictions would continue after the expiry of the given time period.
"We are just an implementing body and have to ensure that landlords and real estate agencies are following the orders," he said.
He denied reports that rent cap would be implemented all over the UAE. "We can only talk about Dubai and as far as I know the 15 per cent rent cap rule is for Dubai only and it will end on December 31. I don't know what will happen next," he said.
His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, ordered on November 11 last year that rents should not be increased by more than 15 per cent of the annual rent until the end of 2006.
He said there was no significant increase in the number of cases regarding rent disputes. "Landlords know about the rule and they don't tend to violate this," said Al Shaikh.
"But if both the landlord and tenant agree on rent increase, we can't do anything about it. However, if a tenant does not agree, he should file a case with the rent committee because he cannot be forced to sign such a contract," he said.
Al Shaikh also clarified that 15 per cent increase is the maximum limit.
"Even if a tenant does not agree on this increase and he thinks that it is unjustified, he can file a case with the rent committee," he said.
"Whenever a tenant comes to us to complain about a rent increase, we tell him to discuss the case with the landlord and file the case if he does not agree," Al Shaikh said.
A complainant has to pay 3.5 per cent of his annual rent as fee to the committee. If a tenant wins the case the fee is adjusted with the rent.
Tenants 'have the right to complain'
Fifteen per cent is the maximum rent increase permitted. If a tenant does not agree even on the 15 per cent increase, he can contact the rent committee and file a formal complaint.
The committee will send its team to visit the building and then determine whether the 15 per cent increase is justified or not. The official said tenants should not fear landlords because their rights are well protected.
"No landlord can evict tenants without any solid reason which is non-payment of rent or other complaint. Even for eviction, the landlord has to file a case with the rent committee to decide whether he is justified," said Mohammad Al Shaikh, General Secretary of the Dubai Rent Committee. Residents can call 04-223 2323 to complain against rent hikes.
Your comments
People will be scampering out of this country if these rent increases aren't addressed properly. Imagine having an increase of 15% every year on your annual rent, accompanied by another double digit increase in the cost of transportation, services, basic commodities. We are talking about an inflation rate where even the best investments in the world cannot survive. Remember, nobody is getting an annual remuneraton increase of 15%. How can 99 percent of the working population survive these?
Karlo
Abu Dhabi,UAE
The committee should also consider that salaries are not increased by 15% per annum every year for an average indiviual who is staying with their family in Dubai. Hence rent increase should have a ceiling for 3 years minimum and 15% should be brought down to 10% and should be applicable only after a 3 year stay.
Kshitiz
Dubai,UAE
We came to the UAE to save money not to live in a miserable way. Please help us.
Sufyin
Sharjah,UAE
Accomodation in Dubai is very expensive. The goverment should make it easy for everyone to pay reasonable rates. The ladies should have rights to rent houses on their own direct from the landlord. Equal rights for men and women should be applicable.
Joyce
Dubai,UAE
Rents must be controlled and time for controlling these greedy land lords exeeds. We are staying in a studio flat and there are 14 batchilors staying together. This situation comes about due only to rent increases in the UAE.
Johney
Dubai,UAE
The rent rate in the UAE is so ridiculous. And who is going to pay '3.5 per cent of his annual rent' just to file a complaint?
Abr
Abu Dhabi,UAE
If this 15% hike continues, then people will have to send their families back home and will be forced to live as bachelors.
Venkat
Dubai,UAE
Even in Abu Dhabi, apartment rents are increasing beyond imagination. Real estate agencies are capturing most of the buildings and making fake scarcity. When I was looking for a flat, I came to know real estate agencies in Abu Dhabi are raising rents almost double the previous year's rent.
Thomas
Abu Dhabi,UAE
If landlords are obliged to register the rent of their flat through an office and register the amount they are renting the flat for, then the 15% increase per annum will be respected, otherwise it's just useless.
Kt
Dubai,UAE
I lived in Dubai for 10 years and left for Bahrain because the increase in rent became unaffordable for the working community. If this situation continues I guarantee that in another couple of years people will send their families back home or migrate to other countries. This would affect the economy of Dubai.
Sreedhar
Manama,Bahrain
The UAE government must have a fixed regulation on rents for flats and villas. Real estate agencies are taking advantage of this.
Alvaro
Dubai,UAE
I think rents should not be increased every year as most companies do not give increment or house allowance to staff.
Mohamed
Dubai,UAE
Even if the rent is coming down
these real estate people are asking for a high key money which is really a burden to all.
Keerthana
Dubai,UAE
The loft on rent is a good idea but it is not working. As our contract is up for renewal - the landlord simply asks us to evict the apartment. In our case he clearly told us that if we stayed he could only make 15% more - but by telling us to evict he can hike the price up from the current Dh48,000 to Dh 85,000 (45%).
If there is no control of the rent for the new tenants compared to the old rent price, how does this rule make any difference?! And in most cases it is the agencies that encourage the landlord to evict tenants so that the rent can be increased by 40 to 50%.
Nielsen
Dubai,UAE
We all hope next year our respected ruler will stand with the people who are suffering to survive here.
Maya
Dubai,UAE
We appreciate the efforts of His Highness in curbing the hikes in rents, but most landlords still continue to strike tenants.
Farhan
Dubai,UAE
I would justify increase in rent if it came simultaneously with increased salaries. Also, I don't understand the point of paying a 3.5 per cent legal fee. If the person is filing a complaint, why would he lie? Of course the landlord is exceeding the 15% cap, that's why the tenant is filing the case. It's not the matter of whether the tenant wins or loses!
Naomi
Edinburgh,UK
I have taken a house in 2006. the landlord increased the rent by 40% as compared to the previous tenant, stating that the 15% cap is not applicable to new tenants.
Sunny
Dubai,UAE
I have been a resident in Dubai for almost two years, and when I first came here, it took me nearly eight months to find a place. Looking in general at the rent increase, it is becoming ridiculous to a point that it's a joke. If prices even do continue at the average rate of 15% yearly, then in a few years time there will be no one left in Dubai. Rents should be classified by areas and not by how the landlord feels when he wakes up. There should be a limitation, for example, a one bedroom flat can increase at 15% yearly until it maxes out at Dh40,000. New ways of attracting more people to come and live in the UAE should be devised, not more reasons for them to leave.
Rami
Dubai,UAE
It's a good thing that the Dubai authorities have a rent-cap committee. Can anyone enlighten me whether the same is available in Abu Dhabi?
Rodrigues
Abu Dhabi,UAE
The 15 per cent increase in annual rent is very high. Our salaries do not increase in conjuction to rent increase. it should have been a 15% increase for a period of 2-3 years instead of every year.
Raymond
Dubai,UAE
The rents have doubled in the past two to three years, whereas salaries have not been increased in the same ratio.
Laxmi
Dubai,UAE
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