Residents in Al Reef Villas, Abu Dhabi, say increasing rental costs are going to hit them hard. Many have no choice but to pay the rents demanded. Christopher Pike / The National
Almost 18 months since the removal of the 5 per cent cap on annual rent increases, tenants say they are still being hit with hefty increases.
And some real estate insiders are asking whether it is time to bring the cap back in the capital.
“Since November 2013 when the Government removed the cap, landlords have been free to raise the rent to whatever they wanted,” said Liam Coady, of MD Real Estate. He said that last year rents rose by an average of 16 per cent across the city.
“Right now landlords hold all the cards,” he said. “The sooner the cap goes back on, the better. It makes a better playing field.”
But Mr Coady said losing the cap also meant owners could bring their under priced units up to market averages. That led to discontent from tenants who thought they were being gouged by increases.
“The main reason for prices jumping so steeply in places like Al Reef and Hydra Village is when they first became available they were really cheap,” he said, adding there had been enough time for the correction. Read More