Expected to be released soon
Fixing the rental value in Dubai for 3 years under the new law
The new law offers a number of benefits to renters and landlords in Dubai
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The Director General of the Dubai Land Department, Sultan Butti bin Mejren, expects the issuance of the new rent law in Dubai soon, indicating that the law is ready, and all the provisions put forward by the department have been agreed upon, including fixing the rental value for a period of three years for all lease contracts.
The new law
Sultan Butti bin Mejren said, "The new law stipulates that the owner may not increase the rental allowance for residential real estate before the expiration of three years from the date of signing the contract between the owner and the tenant."
He added that «the law is ready, and work is being done on its own regulations, after agreeing on all the items submitted by the Land Department and the Rental Dispute Settlement Center, including the items that address gaps in the previous law, such as the possibility of resorting to the execution judge in the event that the tenant does not pay the rent ».
He pointed out that the new law balances the rights of all parties, the tenant and the owner, as there are provisions that guarantee the right of the tenant, and other provisions that guarantee the right of the owner, including the possibility of resorting to the enforcement judge in the event that the tenant does not pay the rent.
Rental value
Bin Mejren pointed out that fixing the rental value in Dubai for three years would stimulate and encourage investments in the emirate, and increase the occupancy rate for Dubai real estate, given that the rental sector represents the predominant percentage in the real estate market.
He added, "This law will help settle tenants in Dubai, because it provides a good alternative for them, away from the annual movement in search of cheaper real estate, in addition to annual increases in rental values, as is the case now."
He explained that «the system is in effect in many countries of the world, and a number of the emirates of the state, and the goal behind it is to achieve stability for families and companies that wish to develop future plans in the medium term», stressing that stability is one of the most important fruits of fixing the rental value.
He stressed that the new law will provide a number of benefits to tenants and landlords in Dubai, as tenants will be able to manage their expenses in a more accurate way, and know their ability to bear the rent of their residential unit in the near future, while landlords will have a clear idea of their rental income.
Residential real estate
For his part, the head of the Rental Disputes Settlement Center, Judge Abdul Qader Musa, affirmed that “the new rent bill in Dubai, which is expected to be approved soon by the Supreme Legislation Committee in the emirate, confirmed that the owner may not, for any reason, increase the rental allowance for residential real estate. Before the expiration of three years from the date of the beginning of the rental relationship between him and the tenant (three years from the date of signing the rental contract between the two parties), provided that the increase in the rent allowance, if any, after the expiration of that period is at the average wage of the same, according to the indicator for determining rental allowances, without The need to notify ».
Judge Moussa clarified that “with regard to dealing with contracts concluded before the new law, the increase will be calculated after three years have passed from the date of entry into force of the law if it is approved, according to the rents index, and without notification as well.”
He emphasized that the new law will contribute to the stability of families and support economic activities, because many investments need a long period in order to return returns to their owners.
The new law balances tenant and landlord rights, and addresses gaps in the current law.
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