Latest news with #rentalagreements
Arabian Business
7 days ago
- Business
- Arabian Business
Dubai Smart Rental Index bears fruit as landlords recalibrate pricing strategies
Tenants are successfully using Dubai's Smart Rental Index to challenge unjustified rent hikes, leading to fairer rental agreements and reduced conflicts with landlords, as the regulatory tool delivers on its promise to moderate extreme rental increases seven months after its introduction. The Index, launched by the Dubai Land Department (DLD) in January 2025, has shifted bargaining power towards tenants and created what brokers describe as a more balanced rental market, with data from the first half of 2025 revealing divergent trends across different price segments and neighbourhoods. Landlords are recalibrating their pricing strategies in response to the artificial intelligence-powered tool, which uses multiple data points including rental contract values, area averages, and building classifications to determine fair rental adjustments whilst requiring landlords to provide 90 days' notice for increases. 'Tenants have successfully used the index to challenge unjustified rent hikes, leading to fairer rental agreements and reduced conflicts between landlords and tenants,' said Ronan Arthur, Director and Head of Residential Valuation at Cavendish Maxwell. Experts say the framework has encouraged fair pricing by limiting landlords' ability to raise rents beyond set thresholds. Regulatory tool creates market discipline The new framework has created what brokers describe as a two-speed market, with luxury waterfront communities continuing to post gains whilst budget-friendly areas experience corrections. Several mid-tier and budget areas experienced significant corrections as the regulatory tool took effect. In Al Furjan, five-bedroom villas fell 12.9 per cent to AED 319,000 annually, whilst four-bedroom units declined 4.92 per cent to AED 234,000, according to Bayut's latest half-year report. Certain areas in Jumeirah Village Circle also reported decreases of up to 13 per cent for specific property types. International City and Discovery Gardens experienced rental declines during the first half, which Maxwell attributed to recent regulatory crackdowns on subletting and increased competition from higher-quality nearby units. 'The DLD Smart Rental Index, launched in January 2025, is beginning to limit extreme rental hikes, especially in communities with higher vacancy or ageing stock,' said Andrew Cummings, Head of Residential Agency at Savills Middle East. 'This is creating a more data-driven, transparent negotiation environment for tenants and landlords alike.' According to Bayut, budget-friendly properties saw increases limited to nine per cent, whilst mid-tier rentals generally rose by up to seven per cent – a marked moderation from previous years' double-digit spikes. Prime areas maintain upward pressure Despite the regulatory constraints, prime areas like Business Bay and Dubai Marina saw rental rates increase during the first half, driven by young professionals seeking proximity to Dubai's financial districts. 'Business Bay saw rental rates increase in H1, driven by high demand from young professionals and its proximity to Downtown Dubai and DIFC,' Maxwell said. 'Dubai Marina also saw rates increase, supported by continued demand for waterfront living, proximity to the beach and JBR.' The luxury villa segment showed particularly strong momentum, with properties in Emirates Hills, Jumeirah Golf Estates, and Dubai Hills Estate recording rental increases of up to 11 per cent, according to Cummings. 'Mid-market apartments in Dubai Marina, Downtown Dubai, JVC and Dubai Hills Estate recorded the strongest growth in H1 2025, with luxury villas in Emirates Hills, Jumeirah Golf Estates, and Dubai Hills Estate up by around 18 to 45 per cent in sales prices and villas seeing up to 11 per cent rental increases,' Cummings said. Dubai Hills Estate emerged as the standout performer in the luxury villa segment, with six-bedroom properties seeing a 52.5 per cent increase in asking rents to AED 2.31 million annually. However, despite the regulatory changes, short-term rental conversions continue to affect pricing dynamics in prime locations. The conversion of units to platforms like Airbnb has tightened long-term supply in Dubai Marina, Business Bay, and Jumeirah Village Circle. 'Short-term rentals have kept rents elevated in areas like Dubai Marina, Business Bay, and JVC by reducing long-term supply and increasing demand for furnished, flexible units,' Cummings explained. Arthur noted that in areas where landlords convert units to short-term rentals to capitalise on higher yields, fewer properties remain available for long-term tenants, driving up rents and making it harder for tenants to find affordable housing. Landlords adjust strategies as market balances The regulatory intervention has forced landlords to recalibrate their approach to pricing and tenant relations. Market experts emphasise that inflexibility on pricing could prove costly in the new environment. 'One crucial point for landlords: dead occupancy is expensive. Being inflexible on pricing can result in longer vacancy periods, especially in a market where tenants have more options,' Cummings warned. Despite the regulatory constraints, Dubai's rental market maintained robust activity levels. Data from Betterhomes showed 39,251 rental transactions in July alone, representing a 3.4 per cent month-on-month increase. New rental contracts accounted for 40 per cent of deals, up from 37 per cent in June. Supply pipeline expected to continue moderation Looking ahead, industry experts predict supply increases will help moderate rental growth in several key areas. Arthur expects rental prices may begin to moderate in developments within communities where high numbers of newly handed-over units are entering the market. 'Rental prices may begin to moderate and stabilise in certain developments within communities where a high number of newly handed-over units are entering the market,' Arthur said, pointing to Jumeirah Village Circle and Business Bay where high volumes of off-plan sales are being completed. However, areas currently attracting tenants due to their affordability may still see increases. 'Areas like Dubai South, Emaar South, and The Valley, which are currently attracting tenants due to their affordability, are likely to see further rental increases as demand rises and supply tightens,' he added.
Zawya
05-08-2025
- Politics
- Zawya
Egypt's President ratifies amendments to Old Rent Law
Egypt's President Abdel Fattah Al-Sisi has ratified Law No. 165/2025, amending certain provisions of Law No. 4/1996 regarding the application of the Civil Code to properties that have never been rented before, or whose lease contracts have ended—or will end—without granting any party the right to remain in them. The law will come into force the day after its publication in the Official Gazette. A newly added Article (2 bis) stipulates that the tenant—or their general or specific successor—must vacate the rented property and return it to the owner or lessor at the end of the lease term specified in the contract. Should the tenant refuse, the owner or lessor may request the summary judge of the competent court to issue an eviction order, without prejudice to the right to claim compensation if applicable. The Egyptian House of Representatives gave final approval to the government-proposed amendments in early July, aiming to resolve longstanding legal and economic challenges associated with old rent agreements. Under the new law, a transitional period has been set before the termination of these contracts: seven years for residential units and five years for non-residential units rented by natural persons. This is intended as a step towards liberalising rental relations between landlords and tenants. At the end of the transitional period, tenants will be required to vacate the units and return them to the owners. The law also confirms that all previous legislation regulating old rent agreements will be repealed after this period. New rental contracts thereafter will fall under the provisions of the Civil Code, ensuring freedom of contract between landlords and tenants. The Old Rent Law has been the subject of widespread debate in recent years. Supporters—mainly property owners—argue it has caused decades of injustice and financial loss due to outdated, fixed rental values. Meanwhile, opponents—primarily long-term tenants—express concern over eviction and the challenge of meeting significantly higher rental prices under new agreements. © 2025 Daily News Egypt. Provided by SyndiGate Media Inc. (
Times
02-07-2025
- Business
- Times
King Charles's estate to review rents charged to NHS and schools
The King's Duchy of Lancaster will 'actively review' its rental agreements after the royal estates faced criticism for charging rent to the NHS and other taxpayer-funded public bodies, The Times has learnt. Last year it emerged that the royal estates of the Duchies of Lancaster and Cornwall, which provide private incomes to the King and the Prince of Wales, received millions of pounds in rent from public bodies and charities, including schools, the health service and the armed forces. On Monday Will Bax, the secretary and keeper of the records of the Prince of Wales's Duchy of Cornwall, said the estate had reacted to 'media scrutiny' by waiving the rent for grassroots organisations such as the Scouts and halving rates for local community groups. Releasing its annual accounts, Bax said contracts with schools on the 52,000-hectare estate would also be reviewed. There was no mention of rent reductions or reviews for the public bodies such as the Ministry of Defence and the NHS, which lease property from the duchy. The Duchy of Lancaster, however, has now confirmed it will 'actively review' its policies. It said: 'The Duchy of Lancaster has a long-established policy of offering nominal rental rates to small charities and community groups delivering valuable services at a local level. The duchy council actively reviews its policies on an ongoing basis and will continue to consider its future position on this matter to see what further steps may be taken.' On Monday, the Duchy of Cornwall, which funds the office of the Prince of Wales and provides him with a private income, released its annual accounts. The prince received £22.9 million from the estate last year, down from £23.6 million the year before. The estate declined to reveal how much tax the prince had paid but confirmed it was at the 'highest rate'. Releasing the figures, Bax said: 'We have created a new policy relating to rents charged to community groups and local charities, where they are active within our communities. The policy focuses on direct tenants. Going forward, we will waive rents for grassroots community tenants and provide up to a 50 per cent rental discount to local charity tenants who directly rent space from the duchy and are active on the ground within our communities.' • Prince William criticised for keeping Duchy tax payments secret Bax added: 'It would be remiss not to address the media scrutiny the duchy has experienced this year … We have used these challenges to stop and reflect. Both the duke and I are clear that we want the duchy to be world-class in our approach to supporting people, communities and nature to flourish.' The scrutiny on the royal estates came from an analysis of the land by The Sunday Times and Channel 4's Dispatches programme. It compiled details of the commercial rent charged to public bodies, including the NHS and Ministry of Defence. Contracts included a £37.5 million agreement between the Duchy of Cornwall and the Ministry of Justice to lease Dartmoor prison and an £11.4 million deal between Guy's and St Thomas' NHS Foundation Trust and the Duchy of Lancaster to rent a London warehouse to store ambulances over a 15-year period. At the time, the Duchy of Lancaster said the estate 'complies with all relevant UK legislation and regulatory standards applicable to its range of business activities'. While the information was already in the public domain, critics questioned whether the agreements should be more readily transparent to taxpayers, who effectively subsidise the duchies through fees levied on schools, the health service and the military. When publishing the most recent report, Bax said: 'I've spent my first eight months at the duchy listening and learning from colleagues, stakeholders, our tenants and partners across the estate, and working closely with the Duke [of Cornwall] to guide this time of reflection and evolution. • King Charles net worth — Sunday Times Rich List 2025 'We are bringing change to the duchy. Whilst this will manifest in different ways, we are particularly refocusing our strategy to maximise the positive impact we have on people, places and the planet.' The latest accounts for the Duchy of Lancaster have yet to be released.
Bloomberg
05-06-2025
- Business
- Bloomberg
Trump's Mar-a-Lago Neighbors Charge Above-Market Rent to US Government
The Trump administration is renting three houses near Mar-a-Lago for $13.3 million, a sum greater than half of the properties' estimated market value and a steep markup from the rates it paid in the same Palm Beach neighborhood five years ago. The General Services Administration in February signed four-year leases for two of the homes and a five-year lease for the third, all within two blocks of President Donald Trump's Florida resort, according to GSA records. Administration officials declined to say how the properties will be used, or answer questions about the rental agreements.
