# Capped at 15%



## DeiraBoy (Apr 26, 2005)

DubaiCanadian, 15% doesn't necessarily mean that the rent all across Dubai will increase by 15% year on year. It's just the maximum. Therefore, at the moment I believe there is a shortage of homes compared to how many people need to live in Dubai and until these huge residential projects are complete the rent increases will continue to be at the maximum of 15%. However, after that I think the rent will come down as more and more people will buy rather than rent, and also demand in some areas will go down compared to others.

So this 15% increase will exist only in the highly sought after areas. Landlords who ask for too much will simply be ignored as more and more residential areas are opened and people will move to wherever's cheaper. Maybe at present the 15% can be seen as too much and landlords may be exploiting the high demand to push the increases to the maximum, but in the future the landlords won't be able to keep increases at 15% year on year ALL OVER DUBAI, and in those places that do have good potential and high demand, lowering the cap to less than 10% would have an adverse effect on real estate business.

Thats just my opinion...I think 15% is alright, with 10-12% being a better range.


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## DubaiCanadian (Dec 31, 2004)

DeiraBoy said:


> DubaiCanadian, 15% doesn't necessarily mean that the rent all across Dubai will increase by 15% year on year. It's just the maximum. Therefore, at the moment I believe there is a shortage of homes compared to how many people need to live in Dubai and until these huge residential projects are complete the rent increases will continue to be at the maximum of 15%. However, after that I think the rent will come down as more and more people will buy rather than rent, and also demand in some areas will go down compared to others.
> 
> So this 15% increase will exist only in the highly sought after areas. Landlords who ask for too much will simply be ignored as more and more residential areas are opened and people will move to wherever's cheaper. Maybe at present the 15% can be seen as too much and landlords may be exploiting the high demand to push the increases to the maximum, but in the future the landlords won't be able to keep increases at 15% year on year ALL OVER DUBAI, and in those places that do have good potential and high demand, lowering the cap to less than 10% would have an adverse effect on real estate business.
> 
> Thats just my opinion...I think 15% is alright, with 10-12% being a better range.


If you leave it up to the landlords, YOU BETTER BELIEVE IT WILL BE A 15% INCREASE YEAR OVER YEAR! Look how ruthless & money hungry they have been in the past, why would that now change!?!?!

I understand that thier is a shortage of supply, but that's why in my suggestion, the rent increase percentages should gradually be lowerd, and at the same time Dubai needs to invest heavily into supplying rental units, it goes hand in hand. A PLAN!

I understand what you are saying, but you cannot leave anything up to the landlords, they have to always be closely monitered & regulated.

You think that 15% increase is alright, wow, you must be one of Dubai's very fortune people, getting an increase of income of over 15% per year must be good. Some people are lucky!

In my opinion 3% is what makes sense, anything above an annual increase of 5-6% is complete insanity and day time robbery. 

Who gives a shit about the adverse effects on the real-estate business. Having them gauge all of our money, advesly effects, the entertainment business, the food business, the clothing business, the travel business, I could go on and on....

If this you make 10,000 /month and you spend 5,000 on rent, you have 5,000 to spend on food, entertainment, clothing, travel, etc.... *SPENDING POWER Dh5,000*

As research suggests, the annual average maximum increase in ones income is 3%, so now next year your income is Dh 10,300 per month. Now you greedy landlord because he simply can, raises you rent 15%, your rent now went from Dh5,000 to Dh5,750.....

You income of Dh10,300 - Your new rent of Dh5,750 = *YOUR NEW SPENDING POWER DH4,550! * 

You lost Dh450 a month spending power that would have went for clothing, entertainment, food, furniture, travel, etc... 

Yes, the Realestate business benifits, but you the tenant and every other business gets screwed!

If you read hundreds of the stories coming out of this, in many instances it's no longer even and issue of supply, is has become an issue of gauging & an issue of taking advantage of people. 

When the average person gets an income increase of 10% to 15% / year, then great I agree with you 100%.... But my friend I'm sorry to tell you, that will never happen. 

So people/tenants, will continue to suffer, every other business will suffer, it's a matter of time, unless the realestate market is very closely regualted & monitered.


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## DeiraBoy (Apr 26, 2005)

You're right DubaiCanadian, but this greed will only go on if demand can't be met, and I can't see that being the case after 2009. Who knows though, it may still be the case and a further reduction required.


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## smussuw (Feb 1, 2004)

I can accept a 1%


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## malec (Apr 17, 2005)

Dubai: Landlords and real estate agents are continuing to arm-twist tenants into paying more than the 15 per cent rent rise ceiling fixed by the government, tenants complained to Gulf News.

One method that surfaced recently was to present tenants with "non-renewable contracts".

Others included alleging the tenant is sub-letting his premises, or saying the building has changed hands and the new owner is asking for a rent revision, they said.

A Dubai Rent Committee official admitted that some landlords are devising various methods to exploit their tenants, and that there is no respite in the number of rent increase complaints being received by the panel.

"More than 50 per cent of the complaints we get are related to rent increases, defying the government's order of a maximum 15 per cent rent hike," said Mohammad Al Shaikh, General Secretary of Dubai Rent Committee.


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## AltinD (Jul 15, 2004)

A person i know got this reply from the landlord, regarding the increase of more then 15%: "... the Sheikh said that, we didn't ..." :runaway:


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## dubaiflo (Jan 3, 2005)

well it was obvious this was going to happen but i am sure they will take care of it.

edit 

lol altin are you serious :lol:


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## smussuw (Feb 1, 2004)

any one can complain to the municipality and can get their rights.


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## AltinD (Jul 15, 2004)

Flo: Yes I AM.


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