RERA Plans Rental Index for Dubai Educational Properties

The Real Estate Regulatory Authority (RERA) and Knowledge and Human Development Authority (KHDA) planned a rental index for school and other educational properties. This rental index will be developed in order to provide a benchmark for rental prices for both private and public educational buildings in the emirate. If we talk about current rental agreements then there are just 70 percent of schools which currently have these agreements in Dubai. This index covers training institutions and other educational universities including schools as well. In addition it will establish appropriate levels of rent according to the areas.

In this current scenario the rents for adjacent schools may vary and as far as private schools are concerned they have a knock-on effect on the level of their tuition fees. This new scheme will now develop long term contracts. The Director General of KHDA and Chairman of Board of Directors, Dr Abdulla Al Karam said: “The scheme aims to define the prices of educational services among various education providers, attracting investment in education to Dubai and enhancing quality in all areas within schools, from the educational to the administrative levels."

Director of RERA’s Ownership’s Relationship management Department, Mohamed Khaleefa Bin Hamad added: “The KHDA will provide lists and records of the types of rented units, their usage and the facilities attached to them.” Moreover, not all schools which are running on a rented land will be affected by this rental index. With this rental index all the irregularities will be erased in terms of pricing and moreover, it will also prevent unjustified hikes in rent. With the emergence of this rental index the KHDA recently said that the school fees can only be increased by just 45 percent for the new school year. Thus, this plan of rental index will surely benefit Dubai educational properties.