Dubai tenants 'facing rent increases'

The cost of renting property in Dubai is likely to rise despite a decree being issued by the ruler of the emirate.

Sheikh Mohammed bin Rashid Al Maktoum recently passed a directive meaning tenants who renewed their contracts for either residential or commercial property last year will see their rents remain constant throughout 2009.

However, those whose payments are more than 25 per cent below the guideline figures published in the new Dubai rental index will still be susceptible to price increases, as the ruling will not apply.

Managing director of real estate consultancy Astecto Andrew Chambers noted that price rises could affect "quite a lot of people", especially expatriates who arrived in the emirate before inflation increases began.

"Those people could have been in there two, three, four, five years and historically they've kept it down so that they would be in line for increases," he remarked.

Meanwhile, United Arab Emirates-based investment bank Shuaa Capital recently predicted the value of Dubai property could drop by up to 60 per cent during 2009.

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