Dubai, UAE — A rising trend in landlord evictions has emerged in Dubai, driven by the city’s record-high property prices and increasing rental rates. Over the past three years, rents in the emirate have surged at a double-digit rate, prompting many landlords to ask tenants to vacate their properties.
As demand from new residents continues to drive up property values, landlords are capitalizing on this market shift by either listing their properties for sale or moving in themselves to escape the escalating rental costs. According to Anisha Sagar, Director of Property Management at Allsopp and Allsopp, Dubai’s rental laws allow landlords to issue eviction notices if they intend to sell the property or occupy it for personal use.
“Landlords are leveraging the current market conditions to sell properties at higher prices or reclaim their homes to avoid the high rental rates across the city,” Sagar stated. Notably, landlords who move back into their properties are restricted from re-renting them for two consecutive years.
In March, the Real Estate Regulatory Agency (Rera) updated its rental index to align with market conditions, yet some landlords are still issuing eviction notices to tenants paying below the index rate. Anmoll D Shroff, Founder and Chairman of Elton Group, noted that despite the Rera index allowing adjustments to rental rates, many landlords are opting to evict tenants to reset agreements and maximize their rental income.
Rupert Simmonds, Director of Leasing at Betterhomes, emphasized that valid reasons for eviction include plans to demolish, renovate, or sell the property, or for the landlord or their relatives to use it. Eviction for the sole purpose of raising rent is likely illegal unless accompanied by justifiable reasons.
Shroff further explained that landlords must adhere to legal procedures and have valid reasons for eviction. “Eviction solely to increase rent without valid reasons is generally considered illegal under current regulations,” he said.
Sagar added that while the Rera Rental Index provides a guideline for rent increases, it does not dictate eviction rights. Landlords must give tenants a 12-month notice before eviction and are prohibited from re-renting the property for two years. The index allows for a maximum annual increase of 20%, influenced by market variables.
Landlords are advised to align their rental strategies with current market conditions and Rera guidelines. While some might seek to raise rents beyond the index in high-demand areas, such increases must be legally justified and comply with Rera regulations.
As Dubai’s rental market continues to evolve, tenants and landlords alike must navigate these changes carefully, staying informed about their rights and obligations under the latest regulations.
Source: Khaleej Times
