Some tenants in areas in Dubai today are still paying below the Rera Rental Index rates, opine some players in the industry.
Following over three and a half-year rally in rentals, the Rera index was revised in March to realign the rental rates with the market price. The Index is aimed at giving the average market rent with all the places where the properties are situated and all the types of properties in the emirate of Dubai.
“Such as Dubai South and Damac Hills 2 are relatively cheaper than the central hub and other established regions like Dubai Marina, Jumeirah, and Jumeirah Lake Towers While the inhabitants of such off-centre regions seek shelter, they get it at more pocket-friendly prices because these exist at the outskirts where the demand is highest.” Said Anmoll D Shroff, founder and chairman of Elton Group.
Moreover, attempts have been made to popularize the adjusted RERA Rental Index with intentions of putting pressure on adjustments in rental charges across various localities.
“For those who would wish to know current standard market rent the Dubai Land department through the ‘Ejari’ smart application has made available the Rental Increase Calculator that can be useful in the determination of the new fair rents as per the latest index rates from either side the tenant or the landlord,” added Shroff.
Speaking to the Betterhomes leasing director Rupert Simmonds, there are some areas and buildings in Dubai where rentals are less than the Rera Rental Index rate.
However, actual rental costs fluctuate based on the building’s age and state, amenities, neighborhood, and demand, he said; some of the cheapest areas are Muraqqabat, Al Qiyadah, Al Tromia, and newer remote places such as International City, Al Warsan, Production City, JVC, among others.
Anisha Sagar, director of property management at Allsopp and Allsopp, said in some cases, apartments may be rented for less than the current market average because the tenants who have lived in the same unit since before the pandemic might be paying lower rent and their rent increases have been gradual, based on their original lease terms.
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Furthermore, older buildings in some areas may see lower rents than newer buildings in high-demand locations such as the main city center. It is foremost to note that the Rera Rental Index is just a guide, and actual rents can vary depending on many factors, such as the location, size, and condition of the property.