Long-term tenants still facing rent increases if they’re paying more than 25% below new index guidelines
Some tenants will have to pay more rent, despite a decree issued by Sheikh Mohammed earlier this week.
Sheikh Mohammed bin Rashid Al Maktoum issued a directive freezing rents on residential and commercial properties in the emirate in 2009, for tenants who renewed their contracts last year.
However, if rents are more than 25 percent below the guideline figure recommended in Dubai’s new rental index , then the freeze does not apply. This means many expats who arrived in the emirate before rampant inflation took hold, face paying substantially more to renew their leases this year.
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Liana Bedran Jan 24, 2009 03:51 pm
Simply SHOCKING! We are going to bleed dry. We are planning to leave as soon as we can, as life everywhere else much cheeper and better...
Bob Boersen Jan 22, 2009 12:49 pm
I find it a great shame that the very people who have shown loyalty to Dubai and have helped build it to what it is today, now face this index. Especially considering the fact that many of them live in houses that were not built in the last 2-3 years, the time that construction, petrol, labour, and other costs increased. I for example live in a house built for peanuts at the start of this decade and now face having to pay what other tenants in the area are paying for a brand new property... fair?? I think not!