Freezing Of Rent Limit Will Stabilise Market’

Real estate experts say that limiting rent increases to maximum averages contained in an index will have little or no effect as the leasing market is already in decline. A decree from the office of His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai on Monday, said that rents could not increase further than averages laid down in a rental index. It is good to freeze the rent limit as it will stabilise the market,” said Anil Gehani, CEO of Zabadani Real Estate. But since the rents are already going down it might be as significant now as it would have been if it was issued six months ago. In order to prevent a further loss of demand, real estate experts say the government should make it easier for people to stay in the country and look for work even after losing their jobs. Since people are leaving the country, the demand will decrease,” said Ramil Aryan, of Response Real Estate. “Demand and supply is the basic principle on which the market functions. Freezing rents doesn’t mean a lot as rents are already coming down,” said Ali Zaida, CEO of Centurion Real Estate. “The government should do something to retain people here. The existing situation is that if you lose your job you have to leave the country within 30 days. People should be given some kind of permit or green card, to stay on and look for another job. The economic crisis has affected the whole world but there are certain ways to control it. In the UAE scenario, retaining people should be the main focus of the government,