The Abu Dhabi rent cap was introduced in 2006 by what has become known as the Tenancy Law. Set at 7 per cent per year, it meant tenancy agreements coming up for annual renewal could be only to a maximum 7 per cent rent increase.
This was later tightened to 5 per cent in 2010 to combat rental rates that were spiralling out of control because of an expanding population and very little residential construction. Prices peaked in late 2008 but fell back because of the recession and the emergence of the master-planned communities such as Reem Island, Al Reef and Raha Beach, which added vast amounts of housing stock to Abu Dhabi’s stretched resources.
In addition to this rental cap, there was an executive council decision that was renewed each year, stating that landlords could not evict tenants at will. Landlords had to have a good reason (a list of these is set out in the Tenancy Law) to remove a tenant. Both of these rules were removed last November. This has been coupled with an almost 16 per cent average rise in rent prices in the newer areas of Abu Dhabi this year.
There is no doubt the population of Abu Dhabi is expanding, and at a faster rate than new developments are being completed. In particular there are no new large villa complexes planned for the next few years. Villa construction will be ad hoc in Khalifa Cities A and B and Mohammed bin Zayed City. Apartment rates should remain more stable as there are quite a few developments coming on line (Oceanscape, Al Bustan, Al Forsan, Gate Towers and Al Rayyana). Rents are on the rise but the removal of the rent cap might slow this increase, particularly in the better areas where rents are rising the fastest.
So what can tenants do in the face of this upheaval? To make sure you get a fair deal from your landlord you can:
1. Use the two months — Article 20(3) of the Tenancy Law states that parties must "notify the other party in writing two months [three months for commercial buildings] prior to the date of the lease's expiry" if they want to amend the terms of the lease. So:
a) Make sure your landlord doesn’t try to raise the rent if your renewal is less than two months away; and
b) Article 20(3) also means you need to give two months’ notice if you want to renew. Make sure you inform your landlord the day before the two-month period is up to give him as little time as possible to request a rent hike.
Note: If you reach the end of your tenancy and neither party has altered the terms of the tenancy agreement then the tenancy is deemed to automatically renew on the same terms.
2. Complain about huge hikes – Landlords are not legally allowed to raise rents to above market rate (although judging this is precarious). If the rise is above market rate, then use this to negotiate a more sensible number.
3. Be a good tenant — What landlords crave above all else is reliable tenants. Look after the property, pay on time and cooperate with your landlord where possible.
4. Negotiate — If a landlord evicts a tenant the chances are he won't be able to get another paying tenant for about a month. That month is a loss of 8 per cent of his yearly rental income. Use this, and the fact you're a good tenant, to your advantage when making a counter-offer.
5. Be prepared to move — If the landlord knows you will stay no matter what, then he can charge what he likes. Prepare yourself to move if necessary, it will make your bargaining position stronger.
6. Negotiate for the future – talk to your landlord and see if he will agree to put in the contract that he will raise the rent by only 5 per cent each year for the duration or your stay in the property. It never hurts to ask.
7. Buy – if you're your own landlord your "rent" is fixed and is dependent only on your bank repayments. It's the perfect way to insulate yourself against future rises and means you stop flushing so much rent away with no long-term gain.
Ben Crompton is a managing partner at Crompton Partners real estate agency
Follow us on Twitter @Ind_Insights
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
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- 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
Unresolved crisis
Russia and Ukraine have been locked in a bitter conflict since 2014, when Ukraine’s Kremlin-friendly president was ousted, Moscow annexed Crimea and then backed a separatist insurgency in the east.
Fighting between the Russia-backed rebels and Ukrainian forces has killed more than 14,000 people. In 2015, France and Germany helped broker a peace deal, known as the Minsk agreements, that ended large-scale hostilities but failed to bring a political settlement of the conflict.
The Kremlin has repeatedly accused Kiev of sabotaging the deal, and Ukrainian officials in recent weeks said that implementing it in full would hurt Ukraine.
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
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What is Folia?
Prince Khaled bin Alwaleed bin Talal's new plant-based menu will launch at Four Seasons hotels in Dubai this November. A desire to cater to people looking for clean, healthy meals beyond green salad is what inspired Prince Khaled and American celebrity chef Matthew Kenney to create Folia. The word means "from the leaves" in Latin, and the exclusive menu offers fine plant-based cuisine across Four Seasons properties in Los Angeles, Bahrain and, soon, Dubai.
Kenney specialises in vegan cuisine and is the founder of Plant Food Wine and 20 other restaurants worldwide. "I’ve always appreciated Matthew’s work," says the Saudi royal. "He has a singular culinary talent and his approach to plant-based dining is prescient and unrivalled. I was a fan of his long before we established our professional relationship."
Folia first launched at The Four Seasons Hotel Los Angeles at Beverly Hills in July 2018. It is available at the poolside Cabana Restaurant and for in-room dining across the property, as well as in its private event space. The food is vibrant and colourful, full of fresh dishes such as the hearts of palm ceviche with California fruit, vegetables and edible flowers; green hearb tacos filled with roasted squash and king oyster barbacoa; and a savoury coconut cream pie with macadamia crust.
In March 2019, the Folia menu reached Gulf shores, as it was introduced at the Four Seasons Hotel Bahrain Bay, where it is served at the Bay View Lounge. Next, on Tuesday, November 1 – also known as World Vegan Day – it will come to the UAE, to the Four Seasons Resort Dubai at Jumeirah Beach and the Four Seasons DIFC, both properties Prince Khaled has spent "considerable time at and love".
There are also plans to take Folia to several more locations throughout the Middle East and Europe.
While health-conscious diners will be attracted to the concept, Prince Khaled is careful to stress Folia is "not meant for a specific subset of customers. It is meant for everyone who wants a culinary experience without the negative impact that eating out so often comes with."
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
Five ways to get fit like Craig David (we tried for seven but ran out of time)
Start the week as you mean to go on. So get your training on strong on a Monday.
Train hard, but don’t take it all so seriously that it gets to the point where you’re not having fun and enjoying your friends and your family and going out for nice meals and doing that stuff.
Think about what you’re training or eating a certain way for — don’t, for example, get a six-pack to impress somebody else or lose weight to conform to society’s norms. It’s all nonsense.
Get your priorities right.
And last but not least, you should always, always chill on Sundays.
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
In numbers
1,000 tonnes of waste collected daily:
- 800 tonnes converted into alternative fuel
- 150 tonnes to landfill
- 50 tonnes sold as scrap metal
800 tonnes of RDF replaces 500 tonnes of coal
Two conveyor lines treat more than 350,000 tonnes of waste per year
25 staff on site
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Cryopreservation: A timeline
- Keyhole surgery under general anaesthetic
- Ovarian tissue surgically removed
- Tissue processed in a high-tech facility
- Tissue re-implanted at a time of the patient’s choosing
- Full hormone production regained within 4-6 months