Property News · December 13, 2016

Abu Dhabi reinstates 5% rent cap


Abu Dhabi has reinstated a cap on rent increases of five per cent, three years after abolishing it, the Department of Municipal Affairs and Transport (DMAT) said on Tuesday.The rule is effective from Tuesday, the DMAT said in a statement.Abu Dhabi abolished the rental cap in November 2013, a move that allowed landlords to raise rents based on prevailing market conditions.Although rents in the capital continue to decline, they are still high by global standards.Average monthly rents for residential property in Abu Dhabi may be falling, but they are still the third most expensive in the world, property broker CBRE said in September.According to CBRE’s Global Living Report, average monthly rents in Abu Dhabi now stand at US$2,558, or Dh112,740 a year, exceeded only by those in Singapore and London.According to property broker Cavendish Maxwell, apartment rents in Abu Dhabi’s five key investment areas all fell by between 0.8 and 2.5 per cent in the 12 weeks to the end of September.Abu Dhabi has been hit hard by the global fall in oil prices, which has prompted a swath of job cuts in the oil and gas and construction sectors in the city, leaving apartments and villas vacant.dalsaadi@thenational.aeFollow The National’s Business section on Twitter

Source : thenational.ae
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