I have lived in the same three-bedroom Springs villa in Dubai for 11 years and pay a low rate compared to many because I have been there for so long. My landlord has put up the rent by 7 per cent every year for the last four years - partly, I assume, to bring me back in line with rents elsewhere in the community. But I see a lot of empty units at the moment and have noticed prices dropping. While the figures quoted are not as low as mine, if they keep dropping and my rent goes up by another 7 per cent this year, I will start to be more in line with market rates? Should I contest the 7 per cent rise when it comes in December? And do you think rents will drop further in the area? TL, Dubai
The first thing to remember is that if a landlord wishes to change the contract's terms and conditions, he has to do it in writing giving 90 days notice prior to the expiry of the agreement. If this window is missed, no changes will be allowed as per the law.
If the changes are within the 90-day window and you do not agree with them, in this case a rental increase, you are at liberty to reject them and move to alternative accommodation. The key here is communication. Clearly the landlord is not interested in having his villa unoccupied, so he ought to be realistic in his approach with you as the existing tenant. That said, he is merely exercising his right to ask a fair rent if that be the case at the time. If by December, you believe you can get a similar property but at a cheaper rent elsewhere, this has to be communicated to the landlord. Remember that you will also have to take into consideration the associated moving costs including the disconnection of the utilities and reconnection charges, etc. These hassle factors will also have a bearing on your decision.
My advice would be to perhaps stick it out for one more year, even if the next rent will be more or less the market rent.
With reference to your second point, it is true that there continues to be downward pressure on rents, so I suspect that come December, your landlord might find it difficult to raise the rent by another 7 per cent. The outcome, however, is down to your negotiation skills and these will depend on the type of relationship you have with the landlord.
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Dubai rental prices:
Where Dubai villa rents have risen and fallen, Q2 2017
Where Dubai apartment rents have risen and fallen, Q2 2017
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Can a single person rent an outbuilding (essentially a studio flat) with a private entrance located within a compound of villas? Is it legitimate if the studio comes with a tenancy contract from a real estate agent and is it acceptable for the contract to include utility bills in the rental price? Would such a contract be necessary or permissible when someone has to renew a visa? SM, Abu Dhabi
I assume the person wishing to rent out this studio, is either the actual owner of the unit or, if not, the owner is aware of the proposed lease contract and has agreed to it. If yes, this is perfectly lawful especially if services are all connected directly. The difficulty lies if the utilities are shared, especially when referring to the water. Paying for these utilities is one thing but if the services are connected via a single meter in the villa, this can affect the ability of you gaining the Tawtheeq. For visa applications and renewals you will need a valid Tawtheeq contract. Getting this is possible even if there is only one water meter but only when the owner has a special approval from the municipality and the rent includes all the utilities. If you cannot get the Tawtheeq, I suggest you seek alternative accommodation otherwise you will have issues with the visa renewal.
Mario Volpi is the chief sales officer for Kensington Exclusive Properties and has worked in the property industry for over 30 years in London and Dubai. The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario.volpi@kensington.ae
NO OTHER LAND
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
The specs
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The Perfect Couple
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Creator: Jenna Lamia
Rating: 3/5
Ms Yang's top tips for parents new to the UAE
- Join parent networks
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- Keep an open mind
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
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Western Region Asia Cup Qualifier
Results
UAE beat Saudi Arabia by 12 runs
Kuwait beat Iran by eight wickets
Oman beat Maldives by 10 wickets
Bahrain beat Qatar by six wickets
Semi-finals
UAE v Qatar
Bahrain v Kuwait
UAE currency: the story behind the money in your pockets
In-demand jobs and monthly salaries
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PAKISTAN SQUAD
Abid Ali, Fakhar Zaman, Imam-ul-Haq, Shan Masood, Azhar Ali (test captain), Babar Azam (T20 captain), Asad Shafiq, Fawad Alam, Haider Ali, Iftikhar Ahmad, Khushdil Shah, Mohammad Hafeez, Shoaib Malik, Mohammad Rizwan (wicketkeeper), Sarfaraz Ahmed (wicketkeeper), Faheem Ashraf, Haris Rauf, Imran Khan, Mohammad Abbas, Mohammad Hasnain, Naseem Shah, Shaheen Afridi, Sohail Khan, Usman Shinwari, Wahab Riaz, Imad Wasim, Kashif Bhatti, Shadab Khan and Yasir Shah.
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
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- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
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The biog
Name: Fareed Lafta
Age: 40
From: Baghdad, Iraq
Mission: Promote world peace
Favourite poet: Al Mutanabbi
Role models: His parents
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%3Cp%3E%3Cstrong%3EFirst%20match%3A%20%3C%2Fstrong%3ENovember%2020%0D%3Cbr%3E%3Cstrong%3EFinal%2016%20round%3A%20%3C%2Fstrong%3EDecember%203%20to%206%0D%3Cbr%3E%3Cstrong%3EQuarter-finals%3A%20%3C%2Fstrong%3EDecember%209%20and%2010%0D%3Cbr%3E%3Cstrong%3ESemi-finals%3A%20%3C%2Fstrong%3EDecember%2013%20and%2014%0D%3Cbr%3E%3Cstrong%3EFinal%3A%20%3C%2Fstrong%3EDecember%2018%3C%2Fp%3E%0A
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
