Abu Dhabi, UAESaturday 24 October 2020

Ajman residents told to report rent rises of more than 20 per cent

The emirate's law states that rents can only be raised three years after the first contract is signed and cannot exceed the 20 per cent cap.

AJMAN // Residents have been urged to report companies or building owners who try to increase rents above the 20 per cent limit to Ajman municipality.

Mohammed Al Marzooqi, the executive director of the economic licences and services centre sector, said the emirate’s laws were very clear regarding rents, which could only be raised three years after the first contract was signed and could exceed the 20 per cent cap.

“Tenants should know their rights and report to authorities whenever they are violated by the landlords or real estate owners,” he said.

The number of disputes reported to the rental committee increased last year, according to figures released by the municipality. There were 1,755 rental disputes reported in 2013, up from 156 in 2012. Most of these were related to increases in rents beyond the cap.

Mohammed Ali, who runs a real estate company in the emirate, said the market was moving at a very high speed with demand for apartments and commercial land outstripping supply. “At present it’s even very hard for one to find a free one-bedroom flat in most towers in Ajman,” said Mr Ali.

Al Jurf, Al Nuaimiya, Al Rashidiya and Karama neighbourhoods had seen the highest increases in rent, said Mr Ali. “A one-bedroom flat in one of these areas is now at Dh25,000 to Dh30,000, up from Dh20,000 a year ago,”

Some residents said they moved after being asked to pay higher rents.

“The real estate increased my rent from Dh17,000 to Dh25,000 in Al Nuaimiya, and when I asked them about the rental cap they told me to simply leave the flat,” said one resident who identified himself as Mohammed.

“I knew I could not have a quarrel with a fluent Arabic speaking landlord, and chose to simply relocate to a cheaper flat in Al Rashidiya.”

Mr Al Marzooqi also announced a new electronic tenancy registration system.

The new e-system, to be up and running by July, requires all real estate companies and building owners to log their details in a municipality database and all tenancy contracts to be attested and registered, as well as investment contracts and any real estate disputes.


Updated: March 24, 2014 04:00 AM