Property rental index to start early next year

source Arabian Business

A property index that will recommend rents for different types of homes in areas across Dubai has moved a step closer.

The Real Estate Regulatory Authority (Rera) has completed the formula that will define rent structures and is preparing to launch the index at the beginning of next year.

"The index will stop landlords exaggerating and increasing rents," Mohammed Khalifa bin Hamad, director of Owners' Relationship Management Department in Rera, told Emirates Business on Tuesday.
Story continues below ↓
advertisement

"Rera has defined the average annual rents for studios, one, two and three-bedroom apartments and compound and single villas."

However the scheme will not be legally binding and is designed to act as an indicator for landlords that shows the fair rent rate for each unit in each building or compound.

Bin Hamad said the move would create transparency over rent rates for each area and would will help investors to prepare their strategies.