Land rent index added to data covering residential, commercial and industrial properties
Dubai Land Department (DLD) has announced that the rental index has been updated for 2018 and that it now includes land, WAM reported.
DLD confirmed that the new update is for all residential, commercial and industrial properties in the Emirate of Dubai.
DLD’s specialists have adopted a variety of mechanisms to carry out the upgrade process, including reading the average data of tenancy contracts registered in the ‘Ejari’ system and the real estate data and units registered in DLD’s databases.
The new rental index includes all areas of the emirate, all types of property, and indexes for new projects. For the first time, a land rent index has been added for land with annually renewable lease contracts.
Mohammed Yahya, Deputy Executive Director of the Rental Affairs Sector at DLD, said: “The rental index is based on a calculation of the increase in rental values, reflecting average rents in different areas, the rental value of registered leases, and the properties offered for leasing. Updating the rental index once a year helps us to maintain transparency in rental transactions for the various properties available for leasing throughout the Emirate. This limits conflict between the parties involved, especially as it is a reference that everyone can rely on.”
The index is based on Decree No. 43 for the year 2013, which determines rental fee increases in the Emirate of Dubai.
The same decree set an increase of 10% of the rental value for the real estate unit if the rental fee is between 21% and 30% of the average wage, an increase of 15% if the rental fee is 31% to 40% less than the average wage, and an increase of 20% if the rental fee is less than 40% of the average wage.