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Saturday 21 November 2009 (UAE)
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Dubai rent cap and rent index for 2009
Dubai rent cap and rent calculator
The 2009 rent cap for Dubai was set at 0% unless your current rent is well below the RERA rent index rates. Use this calculator to calculate the rent cap that applies if your rent is below market rate, and to calculate the rent you might pay in 2009 (more detailed explanation below the calculator).
- From the RERA rent index, look up the rent band for the area and type of accommodation where you live.
- Enter upper and lower limits e.g. if band is 90-120, enter 90,000 for lower limit and 120,000 for upper limit.
- Enter the rent you were paying after last contract renewal in 2008, then press the calculate button.
Dubai rent cap 2009
Our understanding is that the 2009 Dubai rent cap is effectively 0%, 5%, 10%, 15%, or 20% depending on what the 2008 median rental price is for the area and type of accommodation in which you live, as indicated by the RERA rent index.
- Rent cap is 0% (frozen) if 2008 rent is 0% to 25% below the rent index level.
- Rent cap is 5% if 2008 rent is between 25% and 35% below the rent index level.
- Rent cap is 10% if 2008 rent is between 35% and 45% below the rent index level.
- Rent cap is 15% if 2008 rent is between 45% and 55% below the rent index level.
- Rent cap is 20% if 2008 rent is more than 55% below the rent index level.
WAM (the official UAE news agency) reported on 19 January 2009 that decree number (1) for 2009 was issued for "halting any increase in residential and non-residential property rent values in 2009 for the tenants who renew their contracts signed in 2008." The phrase "halting any increase" is probably what caused great excitement amongst tenants who thought their rents would be frozen. But the WAM report then said that applied only to rents above a rent level 25% below the RERA rent index average price for the respective property. For rents cheaper than 25% below the RERA indicator the decree "defines a new formula for lower rent values which allows a proportional increase in rents for 2009." The rent index is based on rents in the second half of 2008 which were pretty much peak rental prices in Dubai. If you have questions, ask them in the rent cap forum topic and we'll do our best to answer them.
03 May 2009 - RERA rent index values were reset to 2008 H2 levels for but then set back to the 2009 Q1 updated values that first appeared 29 April 2009.
Example of possible rent increases in Dubai for 2009
You live in a two bedroom apartment in Al Garhood. The rent index has rental band as AED 125,000-135,000 per year which means the median rent is AED 130k per year. If your rent is:
- between AED 97.5k (25% below) and 130k, then your rent is frozen for 2009
- between AED 84.5k (35% below) and AED 97.5k, then your rent cap is 5%
- between AED 71.5k (45% below) and AED 84.5k, then your rent cap is 10%
- between AED 58.5k (55% below) and AED 71.5k, then your rent cap is 15%
- below AED 58.5k, then your rent cap is 20%
Previous rent caps and other UAE rent caps
| Year | Abu Dhabi | Ajman | Dubai | Fujairah | Sharjah | RAK | UAQ |
|---|---|---|---|---|---|---|---|
| 2010 | 5% | ||||||
| 2009 | 5% | 0%-20% | ? | ||||
| 2008 | 5% | 5% | 5%-15% | ||||
| 2007 | 7% | 20% | 7% | 15% | 0% | 10% | |
| 2006 | 15% |
- Abu Dhabi 2010 rent cap continues at 5% according to WAM report 16 November 2009, also rent contract period increased to maximum 5 years from 4 years.
- Dubai rent cap is only 5% in 2009 according to The National report 17 November 2009, seems to conflict with RERA information of 05-20% rent cap.
- Abu Dhabi 5% rent cap for 2009 confirmed 18 April 2009 (government announcement reported in the press 19 April 2009)
- Ajman 2007 no rent increases for three years after initial 20% hike.
- Dubai 2008 rent cap 0% for tenants in their second year of a contract if rent was increased in 2007 or if a new contract was signed in 2007
- Dubai 2007 rent cap 0% for tenants in their second year of a contract if rent was increased in 2006 or if a new contract was signed in 2006
- Fujairah was reported to be considering a rent cap according to the Gulf News 04 May 2009, reporting comments by Mohammad Saif Al Afkham, Deputy Director of Fujairah Municipality. There was no mention of the 2007 Fujairah rent cap.
- Ras Al Khaimah 2008 rent cap law number 8: 5% for tenancy contracts signed after January 2008, 10% rent cap for contracts signed between January 2004 and January 2008, 15% rent cap for contracts signed before January 2004.
- Sharjah rent cap is apparently 0% for first 2 or 3 years of a rental contract but that might depend on random variables (make up something). Then rent cap is possibly up to 10% but there are reports of tenants getting thrown out after 3 years or rents being increased arbitrarily anyway.
- Umm Al Quwain 2007 rent cap may be adjusted if landlord and tenant agree?
Last update Tuesday 17-Nov-2009
Related pages
- Dubai rent cap - forum topic. Add your questions and comments.
- Shared villas in Dubai
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- Dubai directory - add your link free