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RERA creates 2009 price index for properties

Discussion in 'Dubai property' started by Propy, Jan 14, 2009.

  1. Propy

    Propy New Member

  2. georgihh

    georgihh New Member

    I don’t see any prices:):):)
    I can also write the same article for six months and one hundred employees working for me.:confused::confused:
     
  3. Doctor Robert

    Doctor Robert New Member

    Where is this supposed price index?! :)

    ps: the RERA website is a total disaster: half the links dont work, and those that do are pretty much empty.
     
  4. naxal

    naxal New Member

    Not only that ,it is also an incompetent and inefficient organisation .I had my experience when I lodged my online complaint since more than a month ago and have received no response or reply from any of their staff .I bet no one has even looked at my complaint !!!!!

    :mad::mad::mad: :mad::(
     
  5. Doctor Robert

    Doctor Robert New Member

    Ouch. I feel for them though. Imagine how many complaints they must be getting these days!!

    All I can say is you should keep pressuring them, calling them, etc.
    Maybe someone will notice you eventually!!

    Good luck
     
  6. Wannaberich

    Wannaberich New Member

    RERA seem to be totally useless.No offence but you can't expect the same level of service you would get in the UK for example.
    If Dubai wants to reach the 21st century it should employ europeans in all positions of admin etc and kick out the locals.
     
  7. TommyC

    TommyC New Member

    Absolutely agree! They've been useless for who knows how long. Just the way they "announce" changes in the newspapers every second day and then it's changed a day later. Massive under-the-table agreements with developers which you can't find on their website. Check the most important things on their webpage: the laws that are supposed to "protect" investors, a short summary: If the laws, as they are published, are even valid, they are not enforced anyway.

    It seems that every day the developers gets a new agreement with RERA/Land Department that changes this or that in their favor. And the investor will be completely unaware of this until the day comes when he calls for the laws, then the developers claim this and that, a week goes by and you'll be shown a paper in arabic supposedly saying that whatever the published laws say, the developer can do what he wants anyway.

    RERA/The Land Department is NOT a freestanding regulator, they ARE the government. And the government does whatever it thinks is best for it at the moment, with none regard whatsoever to the people living here. Today it might be one thing, tomorrow another. This would not be the case in a democracy, where they would actually have to care for the people living here.
     
    Last edited: Jan 15, 2009
  8. Doctor Robert

    Doctor Robert New Member

    you can't generalize like that "they've been useless"!!
    if you want to start generalizing, then there is a lot to be said about each and every nationality.

    So, with that in mind, some have been useless, just like a British collegue of mine and my friend's American boss!

    True, a lot of people doing business in Dubai are shady and untrustworthy. But that is why people came here in the first place: loose laws, no taxes.

    So please avoid making any ethnic generalizations.

    However I do agree that there are a lot of people still here who should have been fired a looooong time ago.

    And I do agree that RERA has not been able to deliver on their promises. And I do agree that a lot goes on under the table. But, then again, that is how most of the investors / flippers made their money. How many of you sold units on MOU which could not be sold until a certain percentage of the payment had been completed??

    So, please chill out. The best way to go on about this is to go through the official channels (RERA) and hope they come to their senses. They will have to, eventually, or else they will lose customers' confidence really fast and for good.

    Doc
     
  9. loai

    loai New Member

    i think the index is coming at a bad time... they should have done it earlier... now is the wrong time.. they should let the market forces to work first
     
  10. Fran

    Fran New Member

    There is another website for the rental deals: Ejari.ae.

    But, I guess, one should be registered rental agent to be able to log in and read the info there.
     
  11. financier888

    financier888 New Member

    over and under

    Hi Doc - I really don't think that there any 'under the table' deals going on - bribing officials or employees of RERA to 'look the other way' - and that's a rather serious allegation to make, if not substantiated.

    Laws were enacted and naturally, it was expected that the developers would follow and adhere to the laws - in which case, as we are finding - some, elected to 'go around or skirt the law'. Now that the market has turned, more of these activities are seeing the light of day..

    This change in the market happened very, very quickly - world over. RERA is being flooded and is putting on more staff to cope and deal with it. From another persepctive, they are meeting with members of industry, taking in feedback, recommendations, etc. and trying to find soultions - which does not happen overnight. They have spent years and billions of their own money to build the Dubai brand and do not want to see it tarnished, especially by errant 'developers' that should not have been in the business in the first place..

    I know for a fact that they take the issues raised by the investors serioulsy and you will see in time, that these developers that did not act properply will be brought into accountability... Another issue, (as I have also seen in other countries) is - enacting new legislation that 'legally' provides the govt with more enforcement tools.. I am referring to laws governing what constitutes 'criminal acts' - with those laws in place, you will see justice move rather swiftly. Trying to make that kind of move in absence of the proper legal framework, would then make the govt look like a dictatorship... To enforce the "Rule of law' - you need to first enact the RULES. You are starting to see this process happen but it cannot come to pass in an arbitrary way - or a reactionary way as a short term 'quick-fix' that may have dire long term consequences... So, sometime is needed to act in a prudent and judicious manner..

    Keep in mind, that many of us come from far more evolved markets - some that have history's spanning hundreds of years and the laws that go along with it. This is ALL very new to Dubai - they need time to catch-up and they will.

    Respectfully,
     
  12. Propy

    Propy New Member

    Comprehensive 2009 DXB property Rental Index (Commercial & Residential) in PDF format

    2009 Rental Index for International City (please check page 3 of this document)
     

    Attached Files:

  13. TommyC

    TommyC New Member

    A quick question about how this rental index is created: Who reports the rental rates? Does a person reporting rental prices have anything to gain/lose on reporting a higher/lower rental than what it actually is?

    I get a feeling that it could be in the interest by a landlord to report a higher rental price than it actually is to boost the rental index and subsequently be able to charge more because the rental index is inflated.

    Bit of a longshot perhaps, but landlords in Dubai seems to do whatever they can to get hold of more money including stepping over dead bodies. And if this option is open, we can certainly be sure it's being used.

    Enlighten me, please.
     
  14. DelboyG

    DelboyG New Member

    As I understand it, with only 2 days to study the new decree, anyone who signed a contract in 2008 have the rent frozen unless the rental value was 25% less than the "average" rent for the area as per the RERA guide.

    There is then a sliding scale of allowable rent increases for 26% and over...

    See the following for more details.. http://www.business24-7.ae/Articles/2009/1/Pages/01212009_295c9ceef41f423d99c70464898637e8.aspx

    However, as always with Dubai, nothing is clear in order to leave room for change, i.e. the 25% limit is to cover for the over inflated prices in 2008. added to that is the fact that there is a Dhs.100 fee to register the contract with the RERA for it to added to the average rent for the area.

    This RERA lists is loaded to the high side as it's taken from the peak H2 2008 and all landlords have registered their highest prices and the poorest tenants will not want to pay the 100 fee to register their lower rents. That is how come the rents for IC rank less then rents for Karama were most buildings are more than 10 years old with window A/C, brown water coming from the taps, no facilities or parking and zero maintenance from the landlords.

    Note to all landlords: see all the 10 year old buildings have rusting water coming from the taps.. what will you do in 10 years from now???

    See details of the discrepancies here.. http://www.business24-7.ae/Articles/2009/1/Pages/01222009_d07652d5fa40471c9433e6cd50da2bdc.aspx

    Give it a couple of years and this system could work to relieve the rent cap, but I think it's 2 years late and in this current climate rents will be on the downward path and continue down until housing becomes affordable to the masses. Remember the average salary in Dubai is only about Dhs.5000/- per month with many people on much less, there is no way for them to afford the rents advertised in new Dubai!, that was only for the new comers and they are not coming now so guess what is next.

    Rent should never be more than 25% of income, even if that income is tax free, when rent in New Dubai is at +200% of average income, you have got to wonder... how the hell did we get to this stage? how can one family own their own place with those numbers?? The banks already understand that the figures just don't add up and are not lending any more for real estate.

    This new law is meant to help the investors and landlords, but it just wont work, it can't - the salaries are not there on mass to support the required rents, the residence will stack/share 2, 3, 4, 5, 6, 8 to a single room before they pay those rents so you'd better take what ever is on offer now because the only way from here is down for at least 2 years.

    Good luck out there people.
     
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