Dubai landlords now have a new process in place if they wish to seek a rent re-evaluation, as announced by the Real Estate Regulatory Authority (RERA). Instead of relying solely on the most recent Rental Index update, landlords have the option to request a higher rental amount, but with a significant change in the procedure.

Read this also : More tenants are turning into owners in UAE, increasing the demand for ready properties

Effective April 1, 2024, landlords must provide a judgment or court order when applying for the rent evaluation service, according to Anisha Sagar, director of property management at Allsopp & Allsopp Group. This marks a departure from the previous practice where landlords could pay a fee to the Land Department for rental valuations.

Read this also : Dubai South Properties Awards $408 Million Contract to Al Kharafi Construction

In March 2024, RERA updated its Rental Index, allowing landlords to adjust rents in line with the increase in rental rates. However, the only tool available for determining rental increases is the RERA calculator. Previously, landlords could request a rental evaluation to modify the market benchmark established by the outdated calculator.

With the revised calculator, landlords are now restricted from setting rental prices above the benchmark indicated on the RERA calculator. This change aims to provide tenants with more reliable information and enhance transparency in the rental market.

Read this also : Introducing La Maison Amal: A Wellness Oasis in Al Barari’s Ultra-Luxury Community

Sagar highlighted that in the first quarter of 2024, a total of 72,885 rental contracts were renewed, comprising 145,770 tenant and landlord decisions. Given this significant volume, relying on the RERA calculator as the primary source of truth makes sense. The addition of legal requirements ensures that valuation changes are assessed fairly against the updated calculator, benefiting both landlords and tenants.

Read this also : Qatar Residential Market Holds Steady in Q4: Insights from ValuStrat

Comparing to Q1 2023, the number of rental contract renewals decreased by 7.2% year over year, with 78,565 renewals in Q1 2023. This trend may suggest that despite rising rents, tenants are still exploring homeownership options in Dubai.