RERA index reduces Dubai 2016 residential rents
The rental index is used to enforce maximum allowable rent increases on the expiry of a lease in communities across Dubai
Rents in most Dubai residential communities are likely to decrease in 2016, according to the updated rental index issued by Real Estate Regulatory Authority (RERA).
The rental index is used to enforce maximum allowable rent increases on the expiry of a lease in communities across Dubai, but has been at the receiving end from residents in the past few months for lagging reality and not fully reflecting market conditions.
RERA's 2016 update has pushed rents slightly lower across a few communities in Dubai, mostly between the range of 3% to 8%.
In 2015, the Dubai Land Department said the RERA index would only be updated once a year, and not every four months.
International City reported a rental decline of 5% to 10%, while rentals for one-beds in Jumeirah Lakes Towers are currently down by 5% to 6.67%.
The index further revealed rentals for single bedroom units in Dubai Marina, to be down by 8.3% from 2015, whereas Palm Jumeirah saw one-bed rentals drop by 3.1%.