Abu Dhabi rent squeeze amid 11000 new homes
17.10.11
Aldar, the emirate’s biggest property developer, in January sold
assets including a Ferrari theme park and convertible bonds to the government
for AED19.2bn ($5.23bn) to pay off its debt.
Oil-rich Abu Dhabi in August announced plans t o distribute AED2.3bn (about $626m) to more than 1,400 citizens in the form of housing loans, to build homes or renovate their properties.
The UAE said in June it had ringfenced AED7bn from its 2011 budget funds for housing projects and home loans for citizens, and infrastructure spending.
Around
2,800 residential units were delivered during the third quarter in Abu Dhabi,
JLL said.
The
majority of units were located in Al Zeina on Raha Beach, Yas villas and the
Capital Plaza residential towers, bringing the total current residential stock
to approximately 193,000 units.
Handovers
are set to increase significantly in the fourth quarter, with apartments making
up the majority of the supply. Several towers in Marina Square are complete and
are awaiting power activation within the next few weeks.
Source: ArabianBusiness.com
Dubai Real Estate Blog - Dubai – Rent Control Mechanism Put in Place
The Prime Minister and Vice President of the UAE His Highness Sheikh Mohammed bin Rashid Al Maktoum as ruler of UAE announced a decree regarding the renting values of properties in Dubai in 2010. This has been welcomed as a positive sign and is expected to go a long way in building a friendly relationship between the tenants and the landlord. The decree takes the Real Estate Regulatory Price Index as a reference point for setting new rentals.
Following are the details of the conditions set for revising rents.
The decree asks not to increase the rent if the rent is not less then 25% of the average rental rent of the property of similar specifications. The landlord can increase the rent of the property by 5%, if the already established rental value of the property is less by 25% to 35% of the average rental value of the property of similar specifications. The landlord can increase the rent of the property by 10%, if the already established rental value of the property is less by 36% to 45% of the average rental value of the property of similar specifications. The landlord can increase the rent of the property by 15%, if the already established rental value of the property is less by 46% to 55% of the average rental value of the property of similar specifications. The landlord can increase the rent of the property by 20%, if the already established rental value of the property is less by 55% then the average rental value of the property of similar specifications.
This decree has also chalked out a new formula for lower rental values. Lower rental values will increase proportionately according to the drop in rents for the year 2008 in average annual rents of a property of similar specifications.
Source: Dubai Real Estate Blog - Dubai – Rent Control Mechanism Put in Place
Eye of Dubai (press release)The company has since grown to become the largest private property management firm in the United Arab Emirates. “The varying rent levels over the past 25 1985 rent for studio in Deira: Dh9,500all 7 news articles »