DUBAI // The property rent index in Dubai will for the first time include details of “extras” such as gyms, pools and gardens.
The updated index, which comes into force next week, will allow tenants to check the rent on homes with added amenities, such as a sea view, against others in the same area.
“Owners will have the right to update the system with building details such as swimming pools, gardens, gyms, concierge, size, the building’s services and specific location,” said Marwan bin Ghalita, chief executive of Rera, Dubai’s Real Estate Regulatory Authority.
The new index will be effective from January 1 until April, when it will be updated again.
Property analysts said it would lead to a more balanced market.
“Tenants can go online and look at what services and amenities are being offered and get what they pay for,” said Ian Albert, regional director of Colliers International.
“And you can be rewarded as a landlord by putting up what facilities are on offer.”
Mr Albert said that under the existing system landlords had no incentive to offer added facilities that were not reflected by the rent they could charge, which was capped.
Revised rent-cap rules were announced last weekend. Owners can increase rents by 5 per cent if they are 11 to 20 per cent below market rate; by 10 per cent if they are 21 to 30 per cent below; and by 15 per cent if they are 31 to 40 per cent below.
A maximum 20 per cent rise is allowed for rents more than 40 per cent below market rate.
Under the previous rules, rents had to be 25 per cent below market rate before a rent increase was triggered.
Tenants fear that a combination of the new rules and the updated index mean they will pay more pay.
“I am quite concerned this will push up the rents,” said Shelagh Estment, who rents a three-bedroom villa in the Springs for Dh150,000.
“My villa is opposite the pool and this will be in the landlord’s favour now.”
Pushpaka Shirantha, who rents a two-bed apartment in Al Ghusais for Dh48,000, said: “People are afraid that landlords will be unreasonable when it comes to setting prices.
“This means that it could be similar to 2007 to 2008 and will create a huge problem for tenants. My renewal is coming in March. It is going to be a disaster.”
However, landlords welcomed the updated index and said it would be helpful in leasing homes.
“In some communities, a rental of a two bedroom could be far different from a two bed in the same area because of the size of the apartment and the view,” said one landlord, who owns properties in The Greens.
“Now this would be more useful and give us better clarity on how much to charge.”
Property analysts said the new index would help tenants and landlords.
“The market used to be more tenant-centric before,” said Mr Albert. “There is definitely a greater deal of balance.”
Mr Ghalita also welcomed the revised rent cap.
“The new law will help in protecting the rights of all parties. It will draw a clear road map for both parties on how to deal with the rent increase of a property and give tenants time to plan their finances.
“Rera’s mandate is to create a great real estate environment to protect and attract investors. By introducing this rent mechanism, a high level of transparency is guaranteed in the sector and no ad hoc increases will be applied to rents.”
He said the index, which was updated every four months, was based on regular surveys and data.
“The update is done based on four methods of data collection from several sources.”
It relies on inputs from Ejari, which keeps a record of the number of leases registered with the agency, field surveys and follow ups of homes available for rent.
This is tracked through listings in newspapers and websites.
Rera also collects data for the index through meetings with property agencies and landlords to compare and study the differences in rental values.
pkannan@thenational.ae
Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
- Use the existing EU budget to direct more funds towards defence-related investment
- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
- Create a savings and investments union to help companies access capital
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Stars: Dr Ghassan Abu-Sittah
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COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
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Citizenship-by-investment programmes
United Kingdom
The UK offers three programmes for residency. The UK Overseas Business Representative Visa lets you open an overseas branch office of your existing company in the country at no extra investment. For the UK Tier 1 Innovator Visa, you are required to invest £50,000 (Dh238,000) into a business. You can also get a UK Tier 1 Investor Visa if you invest £2 million, £5m or £10m (the higher the investment, the sooner you obtain your permanent residency).
All UK residency visas get approved in 90 to 120 days and are valid for 3 years. After 3 years, the applicant can apply for extension of another 2 years. Once they have lived in the UK for a minimum of 6 months every year, they are eligible to apply for permanent residency (called Indefinite Leave to Remain). After one year of ILR, the applicant can apply for UK passport.
The Caribbean
Depending on the country, the investment amount starts from $100,000 (Dh367,250) and can go up to $400,000 in real estate. From the date of purchase, it will take between four to five months to receive a passport.
Portugal
The investment amount ranges from €350,000 to €500,000 (Dh1.5m to Dh2.16m) in real estate. From the date of purchase, it will take a maximum of six months to receive a Golden Visa. Applicants can apply for permanent residency after five years and Portuguese citizenship after six years.
“Among European countries with residency programmes, Portugal has been the most popular because it offers the most cost-effective programme to eventually acquire citizenship of the European Union without ever residing in Portugal,” states Veronica Cotdemiey of Citizenship Invest.
Greece
The real estate investment threshold to acquire residency for Greece is €250,000, making it the cheapest real estate residency visa scheme in Europe. You can apply for residency in four months and citizenship after seven years.
Spain
The real estate investment threshold to acquire residency for Spain is €500,000. You can apply for permanent residency after five years and citizenship after 10 years. It is not necessary to live in Spain to retain and renew the residency visa permit.
Cyprus
Cyprus offers the quickest route to citizenship of a European country in only six months. An investment of €2m in real estate is required, making it the highest priced programme in Europe.
Malta
The Malta citizenship by investment programme is lengthy and investors are required to contribute sums as donations to the Maltese government. The applicant must either contribute at least €650,000 to the National Development & Social Fund. Spouses and children are required to contribute €25,000; unmarried children between 18 and 25 and dependent parents must contribute €50,000 each.
The second step is to make an investment in property of at least €350,000 or enter a property rental contract for at least €16,000 per annum for five years. The third step is to invest at least €150,000 in bonds or shares approved by the Maltese government to be kept for at least five years.
Candidates must commit to a minimum physical presence in Malta before citizenship is granted. While you get residency in two months, you can apply for citizenship after a year.
Egypt
A one-year residency permit can be bought if you purchase property in Egypt worth $100,000. A three-year residency is available for those who invest $200,000 in property, and five years for those who purchase property worth $400,000.
Source: Citizenship Invest and Aqua Properties
Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
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Banned items
Dubai Police has also issued a list of banned items at the ground on Sunday. These include:
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Political flags or banners
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Bikes, skateboards or scooters
