How Will the New Rent Law in Dubai Affect the Real Estate Market?
Last April, the Dubai Land Department announced considering a rent law proposal that is meant to help the Emirate's real estate market achieve the major post-pandemic recovery hoped for. According to the new proposal, tenants can enjoy a rent price freeze once they sign a rental contract for at least three years. The proposal that has been perceived as pro-residents one will prevent landlords from increasing rental prices for the three years that residents commit to staying at the property. Not only is this proposal meant to boost the real estate market in Dubai, but also to stabilize the market and consequently the number of people residing in the emirate. Considering that Dubai is mainly inhabited by foreign expats who relocate for work, this proposal is expected to serve as a grounding strategy to keep them in the country for as long as possible, which can eventually help Dubai and the UAE recover from the economic devastation caused by the COVID19 pandemic. However, questions over the practicality of this law are rising, especially because the vast majority of Dubai residents are only granted legal statuses if they get to work in the country, which means that their decision to stay in the country are subject to the stability of the labor market. On the other hand, this law can be quite helpful for individuals who are granted more flexible residency options in the UAE, such as the newly announced golden visas that offer 5 and 10 years residencies to entrepreneurs, investors, bright students with promising scientific capabilities, artists and researchers in various fields of science and knowledge.