Dubai landlords get tough: Increasing rents randomly, issuing 30-day notices to tenants to vacate

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The number of rental disputes has risen in Dubai in the past one year, according to CBRE.

In its latest Dubai MarketView, Mat Green, Head of Research & Consultancy UAE, CBRE Middle East said, “Over the past 12 months, landlords have become increasingly bullish, leading to an increasing number of rental disputes being raised at the Rent Committee.”

No figures were given, however, a number of notices are being published in local newspapers on a daily basis.

Disputes have been on the rise since landlords have been increasing rents randomly, even issuing 30-day notices to tenants to vacate apartments.

Although it is not mandatory that landlords follow it, the Rent Committee refers to Dubai’s Real Estate Regulatory Agency’s rent index when issuing a decision on any rent case.

Landlords have to give a 90-day notice when they plan to increase rents, or at least 12 months’ notice prior to the determined date of eviction if they want to use the property for personal use.

landlords  asked tenants to pay the excess rent or vacate.

In the past one year, average residential rentals rose by over 30 per cent, with the first six months witnessing a 14 per cent increase.

New master planned communities emerged as the best performing locations, which is a market shift from performance trends during 2012.

Although prime locations continued to see growth, Jumeirah Village and Dubai Sports City topped as the popular cost-sensitive options for tenants.

Rising rents in Dubai also pushed some residents to either downsize or relocate to affordable communities.

In fact, Sharjah rents rose by 16 per cent in the past one year, driven mostly by relocation from Dubai.

Villa properties continued their upward movement in both rents and sales pricing, with six consecutive quarters of growth.

Average villa rents rose by nearly six per cent during the quarter, with smaller two bedroom units registered the highest rate of growth, rising 36 per cent year-on-year.

Earlier this month, Dubai Land Department said total value of property transactions rose by over 30 per cent to reach Dh108 billion compared to Dh80 billion registered in first half 2012.

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