Dubai Consumer Mirror

Monday, February 27, 2006

Rent will NOT go down

Sorry to burst your bubble guys, but this is why ..

In today's edition of Emirates Today, a representative of the 'Rent Committee' in Dubai Municipality said "...We also check the neighboring buildings and compare the rents to see if he [the landlord] can increase the rents or not.”

Dear sir, please allow me to tell you that you are not only doing nothing to ease the exploding rent crisis here in Dubai (proof: rent complaints in 2005 doubled - same ET story), you are actually contributing to the crisis.

Let me tell you how:

1. New property law introduced in Dubai
2. Demand for property increases
3. Everyone discovers a new niche and wants a piece of the action - everyone wants to build a tower
4. Banks increase interest rates on investment loans
5. Building materials, suppliers, contractors, increase prices
6. New buildings end up costing 2 or 3 times what they did a year ago
7. Not because he is greedy, but in order to cover his inflated expenses, new building landlord is forced to charge more than neighboring 1 & 2 years old buildings.
8. Owner of older building sees that newer buildings are charging more rent. Though his building did cost less to build and is actually older, he gets greedy and starts charging more rent from existing tenants.
9. Tenant's head to Dubai Municipality to complain. They end up meeting a person like the one quoted above, who justifies the irrational and unjustifiable increase of rent in favor of the landlord.
10. Rent levels sour and everyone's chequebook end up with soars, bumps and bruises.

With Dubai's property cycle going at it in full throttle, above steps will keep on repeating themselves and rent will always go up as we speak without anyone doing anything about it ..

Thats it, end of story.


  • Oh and its unbelievable that you have to pay to complain!! 3.5% of your rent, which gets refunded to you if you win the case. And regardless of whether you win or lose the case, the landlord will just ask you to vacate after the year. Talk about consumer protection!!

    By Anonymous Anonymous, at February 27, 2006 at 1:35 PM  

  • I suffered from this problem. Before the new law came in, my rent went up 32%. When I pointed out that this was more than the rent committee allowed, our property company told me that the 32% rise was recommended by the rent committee itself.

    Bizarre - a 'rent protection' organisation going around telling landlords to put their rents up.

    Why not let the free market decide the rent and let the rent committee adjudicate?

    The fact that they charge for their services is also a disgrace.

    By Blogger redstar, at February 27, 2006 at 7:13 PM  

  • this is called inflation pure and simple and i believe the authorities in the uae do not yet know how to cope with it. the financial tools to monitor inflation and keep it in check do not exist here yet.

    By Blogger BuJ, at February 28, 2006 at 2:54 AM  

  • Not for a second did I believe in all that rent committee, 10% cap or all the other smokescreen tactics.
    Its not going to happen.
    A look around Dubai and all that money floating around is ample evidence.

    By Blogger kaya, at February 28, 2006 at 7:44 AM  

  • wallah this is very informative !

    moryarti, where is you poll ? i used to visit and vote , we miss it ;-)

    By Blogger Brava Valentia, at February 28, 2006 at 4:05 PM  

  • Hala mother courage .. long time no see :)

    I know! i miss having those polls as well..

    I am trying to find a service that doesn't come with those annoying pop-up ads.

    Thats why i removed it..

    By Blogger moryarti, at February 28, 2006 at 5:34 PM  

  • moryarti san

    Good blog mate..
    unfortunately just as you say.. " all this capping or rent and rent municipality committee adjutication is A TOTAL EYEWASH"
    no one cares, no one gives a damn and ordinary middle class residents ( locals and expats alike) are the ones who suffer the most and are the hardest hit !

    Dubai " the city that cares"

    hmmmmmmmmmmm .. don't think so.

    By Anonymous KDD-Anon, at March 1, 2006 at 12:44 PM  

  • I'm moving to a tent. Anyone got a spare?

    By Blogger farrukh: copywriter & journalist, at March 2, 2006 at 2:17 AM  

  • farukh,

    Try this.

    By Blogger Harsha, at March 2, 2006 at 11:57 AM  

  • Actually in most capitals prices for rentals are high and always go up. Many people move to capitals from other towns and that's why demand for rentals and buying property is high and prices go up.

    By Anonymous Dubai Property, at August 23, 2007 at 1:18 PM  

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