ABU DHABI // Real estate and legal experts have called for adopting measures that would adjust rents in the capital.
The measures should ensure a fair adjustment of rental values and guarantee the rights of all parties.
The experts said the real estate market is in dire need of new regulations 18 months after the removal of a 5 per cent annual rent cap.
This remarks come on the heels of recent rumours spread via text message, erroneously suggesting a new cap of 7 per cent had been set in Abu Dhabi.
Experts emphasised that the circulation of incorrect information contributes to market confusion and reveals impatience among tenants who want rent regulation in the capital.
The Department of Municipal Affairs announced at Cityscape Abu Dhabi that it is preparing a draft law to regulate the real estate sector, after taking into account views of relevant authorities. The department expects a new law at the beginning of 2016. It has also developed indicators for residential rentals in cooperation with the Department of Economic Development, the Central Bank, the Abu Dhabi Centre for Statistics and the Department of Justice. Previously, an ad-hoc committee was formed to study market conditions after the decision to eliminate the 5 per cent cap.
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