Dubai’s landlords, tenants keep close watch for any Rental Index update

Dubai’s landlords, tenants keep close watch for any Rental Index update

Dubai: Landlords and their tenants alike are keeping close watch on the Dubai Rental Index to see whether it will soon reflect in full the rent increases seen in 2022. But they are doing so for quite different reasons. Landlords want their current tenants to pay 15-25 per cent higher than when they entered into the lease. Or failing that, get new tenants. This is why the Rental Index getting updated is of such importance. As for tenants who wish to renew their contracts, they are hoping the current Rental Index range across Dubai’s neighborhoods see the lowest possible increases. And that landlords do not force them to suddenly demand much more than what they are paying now. This is where the workings and verdict of the Dubai Land Department’s Rental Dispute Settlement Centre is vital. But most of their verdicts are based on the Rental Index, which landlords say do not truly reflect the demand-and-supply situation in the residential rental space. Imran Shaukat, CEO of LYM Real Estate, said: “The Rental Index shows rent of two-bedrooms in JLT at Al Seef Tower has not gone up and being renewed at around Dh90,000, whereas the market rate is Dh140,000.” Such