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FINANCIAL NEWS
Abu Dhabi removes annual increase cap on rents
23 Nov 2013
(MENAFN) The emirate of Abu Dhabi decided to remove the cap on annual rent increases, which will open up the property sector in a place where many pay below market rents, Arabian Business reported.
The 5 percent cap on annual rent increase in Abu Dhabi was implemented in early 2008, when inflation was pushed up as demand on property drove rents higher.
Head of research at property services firm CB Richard Ellis said: “Many are paying rents under-the-market rates, so in some cases rents may go up. But with more supply now and competition it is laid more open to market forces.”
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