The Prime Minister and Vice President of the UAE His Highness Sheikh Mohammed bin Rashid Al Maktoum as ruler of UAE announced a decree regarding the renting values of properties in Dubai in 2010. This has been welcomed as a positive sign and is expected to go a long way in building a friendly relationship between the tenants and the landlord. The decree takes the Real Estate Regulatory Price Index as a reference point for setting new rentals.

Following are the details of the conditions set for revising rents.

• The decree asks not to increase the rent if the rent is not less then 25% of the average rental rent of the property of similar specifications.

• The landlord can increase the rent of the property by 5%, if the already established rental value of the property is less by 25% to 35% of the average rental value of the property of similar specifications.

• The landlord can increase the rent of the property by 10%, if the already established rental value of the property is less by 36% to 45% of the average rental value of the property of similar specifications.

• The landlord can increase the rent of the property by 15%, if the already established rental value of the property is less by 46% to 55% of the average rental value of the property of similar specifications.

• The landlord can increase the rent of the property by 20%, if the already established rental value of the property is less by 55% then the average rental value of the property of similar specifications.

This decree has also chalked out a new formula for lower rental values. Lower rental values will increase proportionately according to the drop in rents for the year 2008 in average annual rents of a property of similar specifications.