The United Arab Emirates (UAE) has been one of the most attractive places for expatriates to live and work. However, the soaring rent prices in the country have been a concern for many tenants, leading to a constant search for affordable accommodation. To address this issue, the Real Estate Regulatory Agency (RERA) has implemented new updates to rental contracts in an effort to provide better protection for both landlords and tenants.
RERA is the regulatory body of the Dubai Land Department, responsible for formulating laws and regulations relating to land and property interests. As per the new updates, all rental contracts must be registered through the Ejari system with proper legal advice from reputed lawyers, an online platform for registering lease agreements in Dubai. The primary legislation governing tenancy and rental contracts in the UAE includes the Federal Decree-Law Number 26 of 2007, which has been amended by the Law Number 33 of 2008 (the Amended Rent Law), the Decree Number 26 of 2013 which establishes the Rent Disputes Settlement Centre (RDSC) to handle rental disputes, and the Decree Number 43 of 2013 which governs rental increases in Dubai. In a bid to stabilise the rental market, a new law has been proposed to freeze rental agreements for a period of three years. This would mean that landlords would be prohibited from increasing rent during this time period. After three years, rent may be increased as per the RERA average rental calculation using the RERA rental index calculator.
The proposed law also introduces a fast-track process to resort rent default cases to the execution judge directly, instead of the current lengthy judicial procedure. This would ensure quicker resolution of rent default cases, which are a common issue faced by landlords.
These updates are a welcome change and are proposed to encourage investments in UAE rental properties, increase the occupancy rate of Dubai real estate, and provide stability to tenants who often have to change residences due to soaring rent prices in the Emirate.
In conclusion, the new updates to rental contracts in the UAE are a step towards creating a more stable rental market. By freezing rental agreements for three years and introducing a fast-track process for resolving rent default cases, the UAE is sending a positive message to both landlords and tenants. The proposed changes are expected to encourage more investment in the rental market, increase the occupancy rate, and provide much-needed stability to tenants