A new rental law on the way.

Date: June 21 2017

Dubai Land Department (DLD) is working to publish a new Rental Law. The objective is to evolve from the actual “one-size-fits-all rental index to a new asset specific index, separated between residential, office, retail, health care or school. There would be even a more specific separation into sub categories, taking into account parameters as quality of property construction and property maintenance.

DLD representatives declare that there is a need to keep up with the continuous development of Dubai rental market, trying to lower at last the number of rental disputes.

It is crucial to better the regulation on the relationship between landlords and tenants, in a way that both parties are protected by the law within the specific competence. It is a key factor to strengthen the stability of the Dubai real estate sector and therefore enhance landlords and tenant confidence, while ultimately attracting more investments.

The actual law, created on a previous market situation where there was a shortage of supply, was managing the need to regulate the landlords and protect the tenants.

DLD confirms that the present Law No. 26 of 2007, as amended by Law No. 33 of 2008 has achieved its original scope.

The new Law is meant to solve some confusions on a number of issues, one of those being the rental index, for properties like the mentioned new sub categories, the industrial facilities and so on.

The actual law need the solutions of some existing limitations, either when it comes to specific areas of Dubai or specific property use, or if the property is either new or old.

The recent introduction of the standardized rental contract, the mandatory ejari registration of rental contracts, has consistently added transparency to the real estate market. Some believe that a further improvement could be reached with a future determination of a unified template for any required addendum to rental contracts.



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