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FINANCIAL NEWS
Abu Dhabi limits rent hikes at 5% to ensure social stability
17 Nov 2012
(MENAFN) Abu Dhabi government has issued a resolution to limit rent increases in the UAE capital at 5 percent annually as well as extend the tenancy contracts stipulated in the rent law to November 9, 2013, Khaleej Times reported.
The decision was issued by Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces General Shaikh Mohammad Bin Zayed Al Nahyan.
The move aims at enhancing social stability of the tenants in the Gulf emirate, which would reflect positively on all levels as well as on living standards, the news paper said.
The resolution allows tenants and landlords to know precisely the rate of rent increase beforehand, which helps provide stability to the real estate market in the emirate as well as an element of security in case of sudden changes in rent rates.
Under the 2006 rent law, which regulates the relation between landlords and tenants, the landlords in the emirate cannot ask tenants to vacate the leased units because of the expiry of the tenancy contract before November 9, 2010.
The new resolution now extends the validity of tenancy contracts to November 9, 2013, the report stated.
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