The issue of increasing rental prices across Dubai is having a profound impact on people’s lives. Over the past few months, the huge changes we have witnessed in the real estate market characterised by a massive growth in property prices are placing a great burden on the city’s residents.
In my experience, there are a growing number of individuals and families who although have lived happily in Dubai for many years are now facing up to the possibility of not being able to pay the new rental prices being forced on them and face having to move out of their apartments. The commonly shared experience I am hearing about is the dread for the contract renewal letter, which I likened to waiting for one’s destiny to change and being unable to control fate.
I have a number of friends who are in the position of being asked to vacate their premises after having received notice that their landlords will be selling their apartment as soon as their lease is up.
There is a misconception among tenants that this act is illegal, but it isn’t. RERA, the Dubai Land Department agency that regulates rental matters, states that these notices are indeed lawful and fall under Article 25 of Law 26 of 2007, which governs the relationship between landlords and tenants in Dubai. The act allows a landlord to evict a tenant after 12 months, which gives them the chance to lease out their property again at the current market rate. These actions that are now an everyday occurrence across the emirate are driving tenants to spend more of their money on expensive apartments, or to take the plunge and buy a home with a mortgage. This latter course is leading to increase in the number of property owners in the city – something that is pushing prices even higher.
I believe that employers need to consider reviewing the housing allowance they give to their employees in order to help nullify this increase in the cost of living from rapidly rising rental prices. Dubai’s economic outlook is improving and companies are now in the position to be able to afford to offset this cost for their workers. Dubai is one of the world’s leading cities and its positive outlook can’t help but rub off on its residents. Seeing all its wondrous achievements makes us seek our own improvement and motivation for a better life.