RERA has just updated its Rent Index this year! This spells good news for renters as leasing rates in most residential neighbourhoods in Dubai, particularly freehold communities, are likely be cheaper this year compared to 2015.
So, how much will your rents cost this year? Take a look.
The Rent Calculator, which serves as an online tool for checking legally permissible rental increases, suggests price ranges for property for rent in Dubai and advises renters whether or not they are entitled to a hike this year – be it for villas for rent in Dubai or apartments. A recent review by Gulf News reveals that values of property for rent in Dubai have declined. For instance, rents for one beds have dropped by at least 2.3 to 14 percent this year.
Compared to rents in July 2015, one-beds in International City, Discovery Gardens, Jumeirah Village, Greens, Dubai Marina, Jumeirah Beach Residence and Palm Jumeirah now seem to be cheaper.
However, prices for apartments in Business Bay and Downtown Dubai seem to have increased by 2.7 percent and 2.4 percent, respectively. However, rents in areas such as Jumeirah Lake Towers (JLT) remain unchanged at 75,000 to 95,000 dirhams a year.
Prices of property for rent in Dubai Discovery Gardens have risen. Rents for one beds in the area now cost AED 60,000 to AED 75,000 – up 3.5 percent from last year’s range of 65,000 to 75,000 dirhams. In International City, prices range between AED 38,000 and 45,000, down 14 percent compared to last year. Similar apartments in Jumeirah Village are in the range of 55,000 to 70,000 dirhams a year, down by about 7.4 percent from in 2015. In The Greens, annual rents for one beds are now in the range of 80,000 to 90,000 dirhams, compared to the price range last year which was between 80,000 and 105,000 dirhams.
One bedroom pads in the desirable Dubai Marina area would now cost you between AED 90,0000 and 110,000 yearly – a 4.7 percent decline when compared to 2015 prices. Rents in JBR range also saw a dip of 2.3 percent with apartments now priced at AED 90,000 and AED 120,000 compared to 2015’s price range of AED 90,000 to AED 125,000. In Palm Jumeirah as well, rents are down by approximately 3.5 percent from last year, with prices now in the range of 120,000 and 155,000 dirhams compared to AED 110,000 and AED 175,000 in 2015.
Whether it be villas for rent in Dubai or apartments, remember that there is a maximum percentage of rent increase that should be considered, as per RERA’s Rent Index decree issued on December 18, 2013.
1. If the existing rent is less than 10 percent below the market rental rate, no increase is permitted.
2. Between 11 percent and 20 percent below the market rental rate, an increase of up to 5 percent is permitted.
3. Between 21 percent and 30 percent below the average market rental rate, a hike of up to 10 percent is permitted.
4. Between 31 percent and 40 percent below the market rental rate, an increase of up to 15 percent is permitted.
5. If the current rent is more than 40 percent below the market rental rate, a hike of up to 20 percent is permitted.
If you disagree with your landlord on the rent increase for property for rent in Dubai or particularly for villas for rent in Dubai, then the dispute should be referred to the Rental Dispute Settlement Centre established under Decree No. 26 of 2013. The filing fee for a claim is 3.5 percent of the rental and cannot be less than AED 500 or more than AED 20,000.
Check out the latest property for rent in Dubai and villas for rent in Dubai at holidayhomes.bhomes.com.