Tenants nearing the end of contracts are facing tough negotiations with landlords, whose properties have been revalued by Dubai Land Department under the Real Estate Regulatory Authority (Rera) rent calculator.
The increase in prices in prime villa communities is leaving some tenants facing the prospect of moving to more affordable areas.
“Rental valuation certificates now allow owners to get their properties revalued,” said Louise Heatley, owner and managing director of Exclusive Links Real Estate Brokers.
The revised Rera rental calculator – allowing for up to 20 per cent annual increase in some instances – reflects current market rates, which are already high, she said.
Ms Heatley, who has worked in Dubai for more than 20 years, said a surging rental market with demand outweighing supply has made some tenants rethink where to live.
“We have been checking the calculators, going to tenants and saying the landlord is entitled to increase [by] 20 per cent, which is quite significant,” she said.
“We found some were giving up their tenancies and trying to move to more affordable areas.
“A lot of people are moving further out of the city, particularly families that need a certain number of bedrooms, to Damac Hills 2 or Dubai South."
Renewals
In the first quarter of 2024, Dubai Land Department data showed rental registrations were up 5.8 per cent from 2023, at 159,941.
Real estate consultancy CBRE figures backed up the trend that more tenants were looking to renew existing contracts with a rent increase, rather than move into an overheated rental market.
Growth in new rental registrations for the first three months of the year stood at 12.3 per cent, while the number of new contracts registered fell by 4.1 per cent, CBRE data showed.
Firas Al Msaddi, chief executive of fam Properties, said yearly rentals in Dubai are at an all-time high.
“We have observed a significant increase in yearly rental rates for residential properties, particularly in the city centre and waterfront areas,” he said.
“This has caused rental spikes in other locations, such as Dubai South, as more residents relocate. Many short-term rental tenants have also converted their leases to long-term agreements.”
At the end of 2023, the average rent increased by 26 per cent compared to the same period 12 months earlier, rising to Dh92 per square foot, according to the 2024 Deloitte ME Real Estate Prediction Report.
Mr Al Msaddi said the Rera rental index uncapped adjustment has helped close the gap between renewal and new rental deals.
“These new adjustments have resulted in a decrease in the total number of renewals and prompted tenants to relocate to urban areas,” he said.
“I believe one of the necessary measures [to add stability] is for the Rera Index to differentiate between furnished and unfurnished properties to establish an accurate benchmark for comparison.
“We anticipate a slight market correction by mid-next year, driven by the expected all-time high supply of 37,000 units.”
Off-plan villas
Residential areas due to see new projects handed over to owners in 2025 include Dubai Marina (8,978 units), Jumeirah Lakes Tower (3,080), Business Bay (6,647), Jumeirah Village Circle (8,576) and Dubai Creek Harbour (4,234).
At the 742-acre Tilal Al Ghaf villa community, 6,500 residential units will become available, while the nearby Damac Lagoons project is due to release some 9,000 villas on completion.
“From what I see now, there are a lot of tenants being priced out of the communities they're living in,” said Dean Charter, owner of Paragon Properties.
"Some have had to go back to living in apartments, so there's a shift in their lifestyle.”
However, the grounds for evicting a tenant are tightly regulated. A 12-month eviction notice is issued only if the property is being sold, or the owner decides to move in, or for extensive renovation work that would make the property uninhabitable.
If a tenant is evicted and the landlord re-rents the same property for a higher price, the tenant can file for compensation. It could result in the judge awarding costs based on damages suffered, the equivalent of an annual rental fee, or the difference between current rent and the re-rented amount.
Illegal evictions
James Gosling, a Briton who has been in Dubai for 22 years, filed for compensation after being evicted from his home in Jumeirah Golf Estates.
His landlord had claimed he was selling the property, but he re-rented it above the 20 per cent Rera mark.
“Within two weeks of us vacating, the owner put the rent up by Dh300,000,” said Mr Gosling, who raises capital to install Wi-Fi in workers' accommodation.
After paying more than Dh60,000 in moving costs and legal fees, the Dubai Rental Disputes Centre awarded Dh280,000 in compensation.
Two years later, however, he is yet to receive any payment as his landlord, who owns 85 properties in Dubai, refuses to comply with the court’s order.
And, to make matters worse, he already has 12 similar cases against him. Mr Gosling is on the verge of "giving up".
“I've seen the boom and bust in Dubai before but this feels different,” he said. “People from my social groups are leaving Dubai as it’s getting too expensive to live here.”
High legal costs
The RDC's digital line has simplified the process of logging rental disputes. It has automated the calculation of a rental claim and improved the process of setting up payment plans for fines and compensation.
"However, most people aren't willing to take these matters to court, especially against a landlord who is often financially stronger than them,” said Bassel Boutros, senior associate at BSA Ahmad bin Hezeem & Associates LLP.
And, the high legal costs also act as a deterrent. “They will have to pay court fees, which can be up to Dh22,000 for the eviction claim, as well as attorney fees," Mr Boutros said.
Mr Boutros admits that not "all landlords are acting in bad faith, as some have a legitimate right to recover the property" but tenants should also be protected and "be able to claim compensation if the landlord was acting unlawfully".
This situation is not damaging the property market, but of course, some people have been impacted by this, mostly tenants, he added.
Tightening the screw on rogue recruiters
The UAE overhauled the procedure to recruit housemaids and domestic workers with a law in 2017 to protect low-income labour from being exploited.
Only recruitment companies authorised by the government are permitted as part of Tadbeer, a network of labour ministry-regulated centres.
A contract must be drawn up for domestic workers, the wages and job offer clearly stating the nature of work.
The contract stating the wages, work entailed and accommodation must be sent to the employee in their home country before they depart for the UAE.
The contract will be signed by the employer and employee when the domestic worker arrives in the UAE.
Only recruitment agencies registered with the ministry can undertake recruitment and employment applications for domestic workers.
Penalties for illegal recruitment in the UAE include fines of up to Dh100,000 and imprisonment
But agents not authorised by the government sidestep the law by illegally getting women into the country on visit visas.
UAE currency: the story behind the money in your pockets
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
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The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
Emiratisation at work
Emiratisation was introduced in the UAE more than 10 years ago
It aims to boost the number of citizens in the workforce particularly in the private sector.
Growing the number of Emiratis in the workplace will help the UAE reduce dependence on overseas workers
The Cabinet in December last year, approved a national fund for Emirati jobseekers and guaranteed citizens working in the private sector a comparable pension
President Sheikh Khalifa has described Emiratisation as “a true measure for success”.
During the UAE’s 48th National Day, Sheikh Khalifa named education, entrepreneurship, Emiratisation and space travel among cornerstones of national development
More than 80 per cent of Emiratis work in the federal or local government as per 2017 statistics
The Emiratisation programme includes the creation of 20,000 new jobs for UAE citizens
UAE citizens will be given priority in managerial positions in the government sphere
The purpose is to raise the contribution of UAE nationals in the job market and create a diverse workforce of citizens
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
Read more about the coronavirus
Killing of Qassem Suleimani
THE SPECS
Engine: 1.5-litre
Transmission: 6-speed automatic
Power: 110 horsepower
Torque: 147Nm
Price: From Dh59,700
On sale: now
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
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UAE currency: the story behind the money in your pockets
Dubai World Cup Carnival card
6.30pm: UAE 1000 Guineas Trial Conditions (TB) US$100,000 (Dirt) 1,400m
7.05pm: Handicap (TB) $135,000 (Turf) 1,000m
7.40pm: Handicap (TB) $175,000 (D) 1,900m
8.15pm: Meydan Challenge Listed Handicap (TB) $175,000 (T) 1,400m
8.50pm: Dubai Stakes Group 3 (TB) $200,000 (D) 1,200m
9.25pm: Dubai Racing Club Classic Listed Handicap (TB) $175,000 (T) 2,410m
The National selections
6.30pm: Final Song
7.05pm: Pocket Dynamo
7.40pm: Dubai Icon
8.15pm: Dubai Legacy
8.50pm: Drafted
9.25pm: Lucius Tiberius
Killing of Qassem Suleimani
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
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
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
Mohammed bin Zayed Majlis
