Saturday 21 April 2018

Abu Dhabi caps rent hike at 5pc

Abu Dhabi, November 16, 2012

Abu Dhabi government has decided to cap rent increases in the emirate at 5 per cent annually as well as extend the tenancy contracts stipulated in the rent law to November 9, 2013, in a move aimed at enhancing social stability of the tenants in Abu Dhabi, said a report.

A resolution in this regard was issued by Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces General Shaikh Mohammad Bin Zayed Al Nahyan.

The resolution allows tenants and landlords to know precisely the rate of rent increase beforehand, which helps provide stability to the real estate market in the emirate as well as an element of security in case of sudden changes in rent rates, said a report in the Gulf News.

Under the 2006 rent law, which regulates the relation between landlords and tenants, the landlords in the emirate cannot ask tenants to vacate the leased units because of the expiry of the tenancy contract before November 9, 2010.

The new resolution now extends the validity of tenancy contracts to November 9, 2013, the report stated.

Shaikh Mohammad’s decision aims to enhance social stability of tenants in Abu Dhabi in a manner that ensures their stay in their leased units until November 9, 2013, which would reflect positively on all levels as well as on living standards, the report added.

Tags: abu dhabi | rents | tenancy |

More Construction & Real Estate Stories

calendarCalendar of Events