Rent Cap on 2007 Property

The new rent cap rule in Dubai does not allow Landlords to raise the stipulated seven percent yearly increases in rents on their properties in the year 2007. The mandatory decree issued on behalf of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of UAE and the ruler of Dubai, extends it to tenants who have signed their property Dubai contracts last year for the first time or whose contracts’ renewal was due for renewal on the 1st January this year as per the contractual agreement signed before provided they have already paid the rent that was due for 2006. In the event of any discrepancy the aggrieved tenants can contact the Rent Committee if it has already paid the money in advance and get the money refunded. If the landlord does not comply with the new rule, the tenant can file the case to the same body. He has requested any kind of dispute between the land lord and the tenant to be resolved and settled by amicable bilateral negotiations within the ambit of the new law amongst themselves else they can approach the tribunal under the Rent Committee appointed for the same. This rule has been communicated in public interest by Mohammad Al Sheikh, Secretary General of the Dubai Rent Committee.
The rule also implies that tenants whose rents had been hiked in 2006 will not face another hike in 2007 but the ones who did not face the hike of rent last year will have to pay now but in tune of seven percent of their annual rent only.
Article 2 of the new decree says that for properties whose contracts had already been signed in 2006 with a new tenant will be free of any rent increase in 2007.
The Dubai Rent Committee’s office is located at ground floor of the Dubai Municipality headquarters at Baniyas Road. It can be contacted on telephone at 04-2232766 and 04-2215555
Ploys used by the landlords to evict tenants
The building needs maintenance
Need the house for my relatives
Building will be demolished
The house will be sold
The flat is being sublet
Bachelors are living in the house