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Tenancy Disputes Rise
in ‘Absence’ of Rent Cap

DUBAI - The top official of the body in charge of regulating the real estate market has said that he has “no idea” when the new rent cap will be introduced for the emirate.

Marwan Bin Galita, Director General of the Real Estate Regulatory Authority (RERA), said that no date had been set for the reintroduction of the annual rental cap, which has previously stood at five per cent.

Reports suggest that landlords are raising rents in some buildings to almost double in the absence of any rules limiting the maximum rise.

Mohammed Al Shaikh, Secretary General of the Dubai Rent Committee, said that they were currently experiencing about 15-20 complaints per day from residents in dispute with landlords.“We get lots of complaints all year round,” Al Shaikh said.

“I don’t know what the situation is with the rent cap, but we could get more if it isn’t introduced.”

The previous cap of five per cent has expired with no new ruling to replace it, although sources claim it is still in force.

Elaine Jones, CEO of property management company Asteco, said that it was business as usual.

“It would be wrong of us to say that we are immediately putting up rents.”

It is believed that the annual rent cap will no longer be necessary in the future after RERA makes available its new rental index.

The agency is planning on publishing a list of average rents in areas of Dubai once 60 per cent of tenancy contracts have been registered on its new Ejari web site.

martin@khaleejtimes.com