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Chocoholic · Jan 20, 2009

http://www.gulfnews.com/nation/Housing_ ... 76838.html

Dubai: Rents for Dubai tenants whose contracts were signed in 2008 cannot be raised this year so long as the rent in 2008 is equal to or up to 25 per cent lower than the average market rate, according to a decree issued on Monday.

According to decree No 1 for 2009 issued by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, rents for both residential and non-residential properties in Dubai whose contracts were signed in 2008 cannot be increased in 2009 so long as the rent in 2008 is equal to or up to 25 per cent lower than the average market rate.

The new decree includes a mechanism to deal with low rents, where rents for the current year can be raised as long as the rent for 2008 was up to 25 per cent less than the average market rate.

Mohammad Ebrahim Al Shaibani, Director of the Dubai Ruler's Court, said Shaikh Mohammad's decree aims to curb the soaring rents in Dubai and bring them to reasonable levels.

uaekid · Jan 20, 2009

this is confusing, so Dubai is stopping them from raising the rent and on the other hand prices are expected to go down !!!!!!!!

Chocoholic · Jan 20, 2009

Yes, basically.

sage & onion · Jan 20, 2009

They were saying on the radio (Business Breakfast) that we will see the Landlords inventing more ways to get around the new decree, although I think it is perfectly obvious that rates are currently dropping in the market.

uaekid · Jan 20, 2009

Chocoholic wrote:http://www.gulfnews.com/nation/Housing_and_Property/10276838.html

Dubai: Rents for Dubai tenants whose contracts were signed in 2008 cannot be raised this year so long as the rent in 2008 is equal to or up to 25 per cent lower than the average market rate, according to a decree issued on Monday.

According to decree No 1 for 2009 issued by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, rents for both residential and non-residential properties in Dubai whose contracts were signed in 2008 cannot be increased in 2009 so long as the rent in 2008 is equal to or up to 25 per cent lower than the average market rate.

The new decree includes a mechanism to deal with low rents, where rents for the current year can be raised as long as the rent for 2008 was up to 25 per cent less than the average market rate.

Mohammad Ebrahim Al Shaibani, Director of the Dubai Ruler's Court, said Shaikh Mohammad's decree aims to curb the soaring rents in Dubai and bring them to reasonable levels.

where have they been in the last 5 years ?... well it's a bout time , I think a bit late too

sage & onion · Jan 20, 2009

uaekid wrote:
Chocoholic wrote:http://www.gulfnews.com/nation/Housing_and_Property/10276838.html

Dubai: Rents for Dubai tenants whose contracts were signed in 2008 cannot be raised this year so long as the rent in 2008 is equal to or up to 25 per cent lower than the average market rate, according to a decree issued on Monday.

According to decree No 1 for 2009 issued by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, rents for both residential and non-residential properties in Dubai whose contracts were signed in 2008 cannot be increased in 2009 so long as the rent in 2008 is equal to or up to 25 per cent lower than the average market rate.

The new decree includes a mechanism to deal with low rents, where rents for the current year can be raised as long as the rent for 2008 was up to 25 per cent less than the average market rate.

Mohammad Ebrahim Al Shaibani, Director of the Dubai Ruler's Court, said Shaikh Mohammad's decree aims to curb the soaring rents in Dubai and bring them to reasonable levels.

where have they been in the last 5 years ?... well it's a bout time , I think a bit late too

The problem with the rent levels is always when the Tenant moves out, this then leaves the Landlord / Agent free to set the rent at any level, this in turn tends to de-stabilize the market. It will be interesting to see how this develops in the current market downturn.

Chocoholic · Jan 20, 2009

Hey at the moment, it's a renters market. You can haggle away over rents and the landlords are going to have to lump it. Either be reasonable or get nothing.

sage & onion · Jan 20, 2009

Check this out:

http://www.rpdubai.ae/rpdubai/pdf/Renta ... -12-08.xls

Chocoholic · Jan 20, 2009

Wow that's really interesting Sage. And I suspect they're a lot lower now.

Dubai Knight · Jan 20, 2009

Someone I know was looking for a place in Jumeirah Lake Towers 2 months ago. A 1 bedroom place there was going for 95,000, 3 cheques. Its now going for 75000, 12 cheques!

Not only are the prices dropping but the terms and conditions are getting more reasonable. The only issue is now the additional charges the landlords are finding to bring the rates back up. Make sure you find out what the maintenance and service charges are before you start.

Knight

sage & onion · Jan 20, 2009

Chocoholic wrote:Wow that's really interesting Sage. And I suspect they're a lot lower now.

The list is fairly new, mind you prices are still dropping.

Del · Jan 20, 2009

Dubai Knight wrote:Jumeirah Lake Towers 2 months ago. A 1 bedroom place there was going for 95,000, 3 cheques. Its now going for 75000, 12 cheques!

That's great news for all of us, no?

uaekid · Jan 20, 2009

so what good would this new decree brings ?

sage & onion · Jan 20, 2009

uaekid wrote:so what good would this new decree brings ?

In the current market conditions I doubt if a rent cap is required, however that may not be the case in 3 or 6 months time.

nuzbim · Jan 20, 2009

sage where is the marina values in that spreadsheet? i dont see it on there. i'd be interested in seeing rental index for the marina/jbr area.

arniegang · Jan 20, 2009

sage & onion wrote:
uaekid wrote:so what good would this new decree brings ?

In the current market conditions I doubt if a rent cap is required, however that may not be the case in 3 or 6 months time.

Mate

there is no other way but down. As more "off plan" become completions this year, the market will continue to be saturated with empty properties. The rental and sales market has nowhere to go other than down.

This is why i jumped ship.

arniegang · Jan 20, 2009

nuzbim wrote:sage where is the marina values in that spreadsheet? i dont see it on there. i'd be interested in seeing rental index for the marina/jbr area.

The marina area will hold its own for a little while. I estimate sale prices have dropped by 25%.

Throughout the year as renewals come up and as more people leave dubai i see the rental market dropping substantially as demand all but dries up.

sage & onion · Jan 20, 2009

nuzbim wrote:sage where is the marina values in that spreadsheet? i dont see it on there. i'd be interested in seeing rental index for the marina/jbr area.

I only passed on the link, I didn't prepare it, as they say, "Don't kill the messenger" :lol:

sage & onion · Jan 20, 2009

arniegang wrote:
sage & onion wrote:
uaekid wrote:so what good would this new decree brings ?

In the current market conditions I doubt if a rent cap is required, however that may not be the case in 3 or 6 months time.

Mate

there is no other way but down. As more "off plan" become completions this year, the market will continue to be saturated with empty properties. The rental and sales market has nowhere to go other than down.

This is why i jumped ship.

I don't doubt you m8, things are looking bad right now thats all I know.

onthepalm · Jan 20, 2009

if i'm not mistaken, the excel spreadsheet has tabs at the bottom, though in arabic. Try the second or third tab for marina, jbr, greens, etc.

farthestpoint · Jan 20, 2009

deleted

kanelli · Jan 20, 2009

I hope my previous landlord gets screwed over. He deserves it for how greedy he was.

michaeldubai · Jan 21, 2009

Chocoholic wrote:http://www.gulfnews.com/nation/Housing_and_Property/10276838.html

......so long as the rent in 2008 is equal to or up to 25 per cent lower than the average market rate, according to a decree issued on Monday.......

Somehow, I am not convinced. Especially with the extract from the article as above, seems more like a loophole condition is already there.

Just something to give a boost to the morale of the citizens.

bedro · Jan 21, 2009

Dubai Knight wrote:Someone I know was looking for a place in Jumeirah Lake Towers 2 months ago. A 1 bedroom place there was going for 95,000, 3 cheques. Its now going for 75000, 12 cheques!

Not only are the prices dropping but the terms and conditions are getting more reasonable. The only issue is now the additional charges the landlords are finding to bring the rates back up. Make sure you find out what the maintenance and service charges are before you start.

Knight

12 cheques? That's interesting. What about commercial properties (e.g. office spaces)?

spirophonix · Jan 23, 2009

Well, there's a lot of things that our landlord does which benefiting us right now. Fix every broken things in the building, lights were changed now its more brighter and DEWA goes down. He might be thinking that we are moving - but we will for sure if sees a cheap apt.

Dubai Knight · Jan 23, 2009

bedro wrote:
Dubai Knight wrote:Someone I know was looking for a place in Jumeirah Lake Towers 2 months ago. A 1 bedroom place there was going for 95,000, 3 cheques. Its now going for 75000, 12 cheques!

Not only are the prices dropping but the terms and conditions are getting more reasonable. The only issue is now the additional charges the landlords are finding to bring the rates back up. Make sure you find out what the maintenance and service charges are before you start.

Knight

12 cheques? That's interesting. What about commercial properties (e.g. office spaces)?

Not sure about the commercial market yet. Office space is still at a premium but with the number of businesses either 'downsizing' of 'downandouting' completely, you may find an increase in the number of places where they are willing to make a deal just to get the place occupied.

Knight

dubai1970 · Jan 24, 2009

By 2009 end, predictions are that the credit crunch and global economic crises will become worse and I do not think landlords can get their properties rented out within the range.

Its interested that JLT is higher in commercial than marina but not in residential.

Cheers

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