Kuwait Info.

For tenants, that means landlords will be limited in how much they can increase their rents – to zero in many cases. The index is used by landlords to set rents.

The Real Estate Regulatory Authority (RERA) rental increase calculator on its website on Wednesday showed huge differences in the rental range for many areas of the city compared to the authority’s rental index published in January.

RERA had promised to update the index before the end of April, but with just days before the end of the month and no official word from the regulator, many residents were concerned it would not follow through.

RERA has not said the rental index has been officially updated yet, but the site seems to indicate changes are in place.

A RERA spokeswoman could not confirm whether the index has been updated when contacted by Maktoob Business.

RERA’s rent calculator shows the rent of a four-bedrooms villa in Al-Barsha is in the range of 200,000-240,000 dirhams, down from 250,000-300,000 dirhams, while the rent of a two-bedrooms villa in Umm Suqeim is in the range of 145,000-175,000 dirhams, down from 250,000-300,000 dirhams.

The rent of a studio apartment in International City is in the range of 35,000-45,000 dirhams, compared to 45,000-55,000 dirhams previously, while the rent of a one-bedroom apartment in Dubai Marina is in the range of 80,000-120,000 dirhams, compared to 110,000-150,000 dirhams.

The first index, published in January, was widely criticised because it used prices from 2008 peaks, not reflecting the huge drop in rental rates amid the economic downturn.

Dubai apartment and villa rental rates fell 22 percent and 34 percent respectively during the first three months of 2009, according to property consultancy Asteco.

Real estate firm Landmark Properties this month published a rental price index which gave far lower values across Dubai compared with the RERA index.

Reported : Maktoob