The Dubai Land Department (DLD) has stated that a new draft law
is set to keep rents in Dubai unchanged for a three-year period.
This follows a prediction by the DLD's Director General in
early January this year, after the DLD's recommended clauses
for the new law were accepted. No date has been set for when this
law will come into force, but an official announcement will be made
following the law's publication in the official gazette.
Current issues
The rental sector represents a significant proportion of the
real estate market in Dubai. Landlords and tenants in Dubai
generally dreaded the annual tenancy renewal. The haggling on the
renewal rent, whether the market was going up or down, whether
adequate notice was given by the landlord to the tenant, resulted
in tenants looking to move to different properties, possibly having
to downsize, and landlords potentially ending up with vacant
properties.
