Abu Dhabi: A new Abu Dhabi Government rule that landlords cannot evict law-abiding tenants unless they complete a minimum of five years was welcomed by economists and property sector analysts, who said it will help create a feel good factor in general and give a much-needed fillip to the real estate sector.
"I think, it will bring more stability in the real estate sector. The people living here will feel more secure in their apartments and villas. I think, it's a positive decree," said economist Mohammad Al Asoomi.
"The decision will help ease the financial burden as tenants know they can stay for five years and the landlords cannot increase their rent by more than 5 per cent," said economist Mohammad Amerah.
"The leadership wants to help normal people, the middle income and low income groups. This is one step in the right direction." Amerah added.
Blair Hagkull, managing director for the Middle East and North Africa for Jones Lang LaSalle, a major global property investment advisory company, said the new law provides greater clarity.
"The new law responds to a shortage of housing stock and the broader issue of affordability," said Hagkull, adding that it's important that there are clear rules that define the relationship between a landlord and a tenant.
As per the new rule, the legal protection period covering tenancy contracts in Abu Dhabi has been extended from four to five years, while the yearly rent increase will remain capped at 5 per cent.
General Shaikh Mohammad Bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces, and Chairman of the Abu Dhabi Executive Council, issued the decision amending Article 20 of Law 6 for 2009.
The decision aims to rebalance and stabilise the property market through market mechanisms and demand-and-supply principles. The legal protection shield will, however, vanish if the tenant does not pay the rent, or resorts to illegal practices such as subletting or breaks any other rules.
Source : Gulfnews.com
By Himendra Mohan Kumar,
Staff Reporter, Gulf News
0 comments:
Post a Comment