|
Abu Dhabi: The government of Abu Dhabi reduced the annual rent cap from 7 per cent to 5 per cent on Sunday, in an effort to control the escalating housing crisis in the emirate. The Abu Dhabi Executive Council issued the decision yesterday, which will take effect immediately.
The decision, based on law No. 20 for 2006, which regulates the relationship between landlords and tenants, aims at curbing the increasing rents in the capital, and its negative impact on Abu Dhabi's competitiveness, sustainable economic growth and social stability.
Inflationary pressures
The move comes in response to recent reports indicating an unprecedented increase in rents, but will only benefit those already residing in the capital. New contracts will remain subject to inflationary pressures, given the shortage of supply, and the increasing cost of construction, which is mainly blamed on the increasing cost of building material.
"This is a step in the right direction, and will have a tangible effect on residents. But more time is needed for the housing problem to be fully resolved," Khalfan Al Ka'abi, chairman of the construction committee at the Abu Dhabi Chamber of Commerce and Industry, said.
Some units will be delivered this year, but the bulk will be delivered in 2009, adding to the supply and easing the market," he added.
Your comments
This does not affect the landlords, who still demand rents according to their wishes. If the tenant objects, he is asked to vacate.
Waqar
Abu Dhabi,UAE
Posted: January 14, 2008, 13:07
The decision is highly appreciated. According to me, the rent ceiling should be based on the kind of house, determined by the facilities provided, number of rooms, the quality of materials used, etc.
From Saleem
Abu Dhabi
UAE
Posted: January 14, 2008, 10:53
Good initiative but the landlords don't obey the rule. My landlord has increased the rent by 20 per cent. I couldn't go to the Rent Dispute Committee as the landlord didn't give me any official documents to support the hike. There are several loopholes in the law that landlords use to their advantage.
Muhammad
Abu Dhabi,UAE
Posted: January 14, 2008, 08:47
No matter what, the landlords will have their way. I was threatened of being thrown out and had to settle for a hike of 50 per cent. The landlord has the right to claim back the house for personal use and that is exactly what they do when a tenant refuses to accept the hike.
Roy
Abu Dhabi,UAE
Posted: January 14, 2008, 05:51
Great news! Hope every one is aware of this rule.
Haroon
Abu Dhabi,UAE
Posted: January 14, 2008, 01:22
Send us your comments
TERMS AND CONDITIONS
Gulf News may edit comments for length and clarity but will not change the tone of the message. Comments will only be accepted all if fields (including name) are filled correctly and the message isn't abusive, defamatory or offensive. The Gulf News website will only print your first name along with your comment. Please state in the message if you wish to remain anonymous. All comments sent may be forwarded for use in the Gulf News newspaper.
|
