Tenants approach the RERA rental index against landlords

Tenants approach the Real Estate Regulatory Authority (RERA) rental index against landlords. The complaint is that the rent is increasing and eviction notices are being issued.

Rents are rising in Dubai post-Covid, with apartment rent increases approaching the same rate as villas. The landlords have faced a lot of losses due to the Covid situation. The complaint is that the rent is increased in a favorable situation.

Tenants refer to the Real Estate Regulatory Authority Rental Index to protect themselves against such hikes. Several cases of 12-month eviction or novation notices are witnessed by tenants.

Some landlords take advantage of rent assessment certificates to increase rent at the time of renewal. But until the RERA officially declares a rental valuation certificate exceeding the RERA rental index, the rent index will be applicable for rent renewals.

Dubai's rental market is booming as villa and apartment rents across the city increased by 28 percent and 26 percent respectively, according to Core's third-quarter report.

Apartments at Palm Jumeirah led the way with rent increases of 38 percent, followed by Downtown, The Greens, and The Views. The outer districts such as Dubailand, Discovery Gardens, and Dubai Sports City have also seen sharp rises in rents compared to last year.

Such a steep rent increase is unsustainable as most districts have seen an increase of more than 25 percent. Tenants are becoming more concerned about this because it has an enormous impact on affordability.