Monday, May 13, 2024

UAE Property: 'Can a landlord raise the rent by any amount?

 



Question: I rent a two-bedroom apartment for Dh45,000 ($12,253) per year. Sadly, my landlord passed away and his properties are now managed by a rental company. They informed me that my rent will increase to Dh65,000 next year, which is a 46 percent hike. Is this legal?

Answer: Before addressing your query, I need more clarity. By "expired," do you mean your landlord passed away, or is he still the owner while a rental company manages the property? Does this company have the legal authority to act on his behalf? It’s important to verify their authorization to handle his properties.

Regardless, there are specific protocols for increasing rent. Any rent change must be communicated in writing (email suffices), with at least 90 days' notice. Rent increases must align with the Real Estate Regulatory Agency's rental calculator; they can't simply be decided by the landlord or managing company. Legally, rent can only be increased by a maximum of 20 percent per year, and this is only permissible if the rental calculator or Decree 43 of 2013 supports the increase. Therefore, the rental company’s requested increase appears to exceed legal limits.

Question: I leased my apartment for Dh75,000 in 2019. During the pandemic, my tenant pressured me to lower the rent to Dh50,000, and I agreed due to personal distress. I decided not to renew his lease later, but he managed to legally renew it at Dh50,000 through Rera. He now wants to renew at Dh55,000, but I’ve requested Dh68,000 because he hasn't paid for chiller services, leaving arrears of Dh100,000. He also hasn’t paid a Dh4,000 Dubai Electricity and Water Authority bill. He has damaged the apartment, denied me access, and refused to provide his visa page for me to contact his employer. He has also sub-let the parking space. How can I proceed with filing a rental dispute?

Answer: Given that your tenant has exploited your vulnerabilities, it would be advisable to take this matter to the Rental Dispute Settlement Committee. You have the option to file a case either online or in person. Filing online is straightforward, but visiting the committee in person at the Land Department in Deira might be better if you have questions. Filing a case incurs a fee of 3.5 percent of the annual rent, which might be reimbursed if you prevail. For online filing, visit the Dubai Land Department website or download the Dubai Rest app, navigate to the rent dispute resolution portal, provide the necessary details, upload the required documents, and pay the fees. If you choose to visit in person, you will find typing and translation services available, as documents must be in Arabic. The staff there can offer further assistance.

Monday, May 6, 2024

Sharjah's real estate market reached a trading volume of Dh10 billion in the first quarter of 2024

 



Marking a 67.1% increase from the same period last year. The sales transactions surged to 6,146, a significant rise from 3,011 transactions recorded in the previous year, as per the "Quarterly report on the real estate sector performance" by the Sharjah Real Estate Registration Department. The total number of transactions during this period was 23,478, showing a 9.3% growth year-over-year, with a traded area of 28.3 million square feet.

Abdul Aziz Ahmed Al Shamsi, the Director General of the Sharjah Real Estate Registration Department, highlighted the government's commitment to supporting the real estate sector, emphasizing Sharjah's status as a prime investment destination. He noted the contribution of numerous development projects and the eased real estate ownership regulations for non-citizens and GCC nationals.

In the mortgage sector, the first quarter saw 976 transactions, up 13.1% from last year, totaling Dh2.2 billion. Residential real estate led the transaction volume with 2,242 transactions, accounting for 80.9% of the total. This was followed by commercial transactions at 9.1% with 254 transactions, industrial transactions at 8.6% with 237, and agricultural transactions at 1.4% with 38.

The total property transactions in Sharjah numbered 2,771, with residential lands leading at 1,052 properties, followed by residential apartments at 700, residential built-in lands at 397, and industrial lands at 160.

The real estate sector in Sharjah attracted investors from 94 different nationalities during the quarter. UAE nationals were the largest investors with a total of Dh4.4 billion spent on 7,628 properties. GCC nationals, excluding Emiratis, invested Dh625.5 million across 347 properties. Arab citizens invested Dh2.1 billion in 1,762 properties, while investors from other countries spent Dh2.8 billion on 1,739 properties. The top investors by nationality were Emiratis, Indians, Syrians, Pakistanis, and Jordanians, in that order.

 

UAE Property: 'Can a landlord raise the rent by any amount?

  Question: I rent a two-bedroom apartment for Dh45,000 ($12,253) per year. Sadly, my landlord passed away and his properties are now mana...