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Rent caps

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485
Posts
EW EXPLORER
Latest post on 22 December 2013 - 08:45
Like I wrote before, to much mockery on here, you can't expect people to invest in Dubai and then limit the return on investment. Of course you can, otherwse it will be like capitalism on steroids where all that matters is whether investors can extract their pound of flesh regardless of what happens to the majority of residents. The new decree is a very fair one and it "limits return on investment" to a certain extent. Without a limit Dubai will again see a mass exodus. A fair number of people I know are leaving at the end of the academic year as they are struggling with school fees and high rents. I've already informed my landlord that I'm leaving at the end of the contract. His new rental price is now 1.5 times what I am paying. Places with a more mature housing market have found their level. Unfortunately, Dubai's property market is still in its infancy and needs nurturing. Without these laws there is a chance that there wouldn't be any people left to rent your property....
993
Posts
EW GURU
Latest post on 22 December 2013 - 08:30
Like I wrote before, to much mockery on here, you can't expect people to invest in Dubai and then limit the return on investment. Of course you can, otherwse it will be like capitalism on steroids where all that matters is whether investors can extract their pound of flesh regardless of what happens to the majority of residents. The new decree is a very fair one and it "limits return on investment" to a certain extent.
1811
Posts
EW EXPERT
Latest post on 21 December 2013 - 22:37
This is much more fair. To date, using the Rera calculator, even if the rent was 24% below the market rate, it could not be increased. And if it was over 25% to an upper range, which I can't recall, it could only be increase by 5%. Now if it's 10% -20% below the market rate, you can increase by 5%. This should mean regular, moderate increases and that's good news. Though I wouldn't be surprised if this is easing towards allowing bigger increases. A couple of years ago, the rental cap was 15%. Like I wrote before, to much mockery on here, you can't expect people to invest in Dubai and then limit the return on investment. Dubai needs people to invest for its future growth and I think these new rules bear out this thinking and are good news for investors.
96
Posts
EW NEWBIE
Latest post on 21 December 2013 - 19:33
http://m.gulfnews.com/mohammad-issues-decree-on-property-rent-caps-in-dubai-while-renewing-tenancy-contracts-1.1269593
 
 

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