The Dubai Land Department is considering a
proposal on a no-rental hike provision for three years after the signing of a
lease agreement between landlord and tenant.
“The Dispute Resolution Committee is studying
such a proposal, but no decision has been taken on the ‘if and when’ to roll it
out,” a spokesperson said. “Right now, all rental decisions are based on the
Dubai Rent Index, and it will continue to be so until the three-year no-hike
proposal is cleared.”
Sharjah currently has a three-year cut-off on
new contracts when it comes to rental increases.
It isn’t clear whether the proposal only
extends to residential properties, or would cover all manner of real estate
categories, including retail premises. If it becomes all-inclusive, this would
have a huge bearing for the retail sector, whereby retailers have complained
vociferously about how mall operators set and hike rents, even when market
conditions do not dictate them.
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