Dubai mulls freezing rents for three years
Land department officials study a cap on rents after government introduces measures allowing expats and foreign investors to stay a little longer
Dubai is proposing a three-year cap on rental prices as it prepares to introduce a new law governing homes for lease, according to the Dubai Land Department (DLD) on Thursday.
Officials at the department discussed drafting a measure that would freeze rents for three years from the signing of a contract.
“The new rental law and the three-year contract that the Land Department is drafting is being studied by the relevant departments,” a DLD spokesperson told The National. “The new law will be formally issued in the near future.”
The department did not say if the proposed rent cap applies only to homes or to retail and commercial units as well.
More: Now you can buy land in Abu Dhabi
The proposal comes as Dubai continues to attract more expatriates and investors to the emirate by way of economic reforms and visa enticements. These include a measure granting residency visas of up to 10 years to scientists, medical practitioners, researchers, technically skilled workers, and exceptional students, plus five-year visas for international students.
Foreign ownership laws have also been modified to allow investors to have a 100 percent stake in a United Arab Emirates company, up from a previous limit of 49 percent.
By relaxing foreign ownership laws and offering looser residency requirements, the government could reinvigorate the property market and encourage property seekers to look for longer lease terms, market observers tell The National.
Recommended
The maverick spirit behind Indonesia’s PDW Architects
As design director of PDW Architects, Mohammad Archica Danisworo is applying a defiant maverick spirit to alter Indonesia’s built environment for the better
6 of the finest spots to visit in the evolving town of Penang, Malaysia
Home to Penang’s international airport, Bayan Lepas is evolving to become a promising hub for real estate investors
Retrofitting reaches Asia
Retrofitting Asia’s existing housing stock may hold the key to lower carbon emissions in the real estate industry
Meet the influential man in the green corner
Ommid Saberi works to reduce the impact of buildings on climate change, with a focus on developing countries