Decision to cap rent increases will help in achieving long-term economic success
Good news on the rent front. The decision by General Shaikh Mohammad Bin Rashid Al Maktoum, Dubai Crown Prince, UAE Defence Minister and Chairman of the Dubai Executive Council, to cap rent increases at 15 per cent is both timely and welcome.
But before tenants rush out to spend their expected savings, it would be well to consider that its implementation has yet to be clearly defined.
Dubai is synonymous not just with spectacular buildings but also with incredible growth. This growth has been fuelled by a number of factors, not least the skills of the people who live here and the vision of a future even greater than what has already been achieved.
But it is not enough just to have people coming here. The foundation of long-term economic success is making all sectors of society feel they have a stake in the future, and rent affordable rent across the social spectrum is a vital ingredient.
One survey indicates that rents for apartments in Dubai rose by an average of 38 per cent over the past year.
By any yardstick, that is quite a jump. The challenge now is to make arbitration of any dispute as simple and as practical as possible.
This will not be easy but considering all that Dubai has achieved in recent years, it is well within the capabilities of Dubai Municipality to arrange a transparent and efficient procedure.
Time is of the essence for both tenant and landlord. The landlord is entitled to prompt payment of rent and the tenant to a fair rent that does not rise like a rocket.
Dubai is entering an exciting phase in its history, a period when it will set standards on a global scale, especially in tourism and financial services. The rent cap will help the emirate fulfil its destiny.
