Abu Dhabi ‘set to launch provisional rent index’
Various government departments said to be compiling the index with a likely launch later this year, it was reported
The Abu Dhabi Department of Municipal Affairs (DMA) is likely to unveil a provisional rent index by the end of the year, it was reported.
“A new law was issued regulating the property sector in the emirate and we believe that DMA will come out with a provisional rental index by year-end,” Mohamed Al Khadar, executive director of the Urban Development & Estidama Sector, Abu Dhabi Urban Planning Council (UPC), told Emirates 24|7.
The DMA, the Department of Economic Development, the UPC and Abu Dhabi Council for Economic Development are working on compiling the index, it was reported.
Such an index would typically track prices in various areas; a similar scheme in neighbouring Dubai is used as a guide for landlords wishing to raise rents.
Abu Dhabi removed a 5% cap on rental increases in late 2013, and prices rose sharply last year.
Average residential rents in the UAE capital rose 17% in the fourth quarter of 2014, compared to the same period the previous year, real estate consultancy CBRE estimates.
Rents increased by a further 4% in the first three months of this year, according to MPM Properties, and are expected to continue rising due to a shortage of new housing supply.
This month, the emirate announced a law to regulate its real estate sector and bring in more transparency to protect investors.
