In an effort to control escalating rents, the Dubai government has announced a freeze on its hike.
A decree issued yesterday from the office of Sheikh Mohammad Bin Rashid Al Maktoum, Ruler of Dubai, said rents for both residential and non-residential properties in Dubai whose contracts were signed in 2008 cannot be increased in 2009 so long as the rent in 2008 is equal to or up to 25% lower than the average market rate.
According to UAE’s official news agency, Wam, the new decree includes a mechanism to deal with low rents, where rents for the current year can be raised as long as the rent for 2008 was up to 25% less than the average market rate.
Mohammad Ebrahim Al Shaibani, Director of the Dubai Ruler's Court, said the decree aims to curb the soaring rents in Dubai and bring them to reasonable levels.
