Recently, landlords in Dubai gained the ability to apply for rental re-evaluation with RERA, potentially securing higher rental rates than those indicated by the current rental index. However, as of April 1, 2024, the process for income tax has undergone changes. According to Anisha Sagar, director of property management at Allsopp & Allsopp Group, landlords are now required to attach a judgment or a legal order to their application. This marks a reversal from the recent trend where landlords could use the services of the Land Department for rental valuations and pay a fee to the department. In February 2024, RERA introduced an adjusted Rental Index, allowing landlords to synchronize rents with the market, which has been on an upward trajectory. The RERA calculator is now the only tool for calculating rental hikes, eliminating landlords’ ability to apply for rental evaluation. This change provides tenants with accurate and well-defined information. Sagar noted in his presentation that as of Q1 2024, there were 72,885 renewed rental contracts, totaling 145,770 decisions made by tenants and landlords. The downward trend in renewals in the 2nd quarter of 2023 compared to Q1 2023 (78,565) could indicate a growing trend of tenants choosing to buy homes in Dubai due to the rise in rents over the past year.
