Abu Dhabi reintroduces 5% cap on annual rent hikesby Neha Bhatia on Dec 14, 2016
Abu Dhabi has reportedly reintroduced a 5% cap on annual rent hikes after a gap of three years.
According to a Reuters report cited by Arabian Business, the cap will be implemented to protect tenants from unfair price rises.
"Rents are going down, so to be fair to everyone, there is a cap of 5% now," an Abu Dhabi Municipality official that chose to be anonymous reportedly told Reuters.
"This way tenants will be protected from some landlords" that try to raise rents against market trends, he added.
Earlier this month, property consultancy Cluttons stated in a report that further declines are expected for Abu Dhabi residential rents into 2017, with prices steadily dropping throughout the year.
Rents have fallen 9.4% across Abu Dhabi's residential investment areas from the beginning of 2016 as declines outpaced a fall of about 5.2% in the value of homes over the same period, the report highlighted.
Cluttons predicts that villa values will have fallen by 10% by the end of the year while apartment values expect a 4% fall across the city.
The report said that the villa rental market had borne the brunt of the slowdown, with average villa rents falling 20% in 2016.
- Eshraq Properties reports net loss for 2016
- UAE: Arabtec working with boutique investment bank
- Union Properties profits drop 51% in 2016
- London property investment remains popular for GCC
- Rezidor signs contract for two new hotels in Dubai
- Sobha offers discount on DLD fees for Emiratis
- ADFD loans Sudan $90m to build hydroelectric plant
- SSH awarded Marassi Boulevard project in Bahrain
- UAE: Nakheel reports annual net profits of $1.35bn
- Office rentals in Abu Dhabi expected to decline