‘Abu Dhabi rental index an answer to tenants’ problems’
The new Rent Index in Abu Dhabi, slated to come into force in March 2014, will “bring a lot of transparency in the real estate sector and will build trust and confidence between the landlord and tenant,” Masood Al Awar, CEO of Abu Dhabi-based property management firm Tasweek, said in an interview with Khaleej Times published on February 11.
The Rent Index was an answer to the problem tenants were facing, AL Awar said, adding that it will provide guidance to the stakeholders, as they can refer to it in disputes. The rent index, he assumed, might have various components to be take care off to justify any increase. It could be location of the property, the facilities it offers, amenities, and services and of course the quality of infrastructure around it, the paper wrote.
The zoning system will help differentiate between different localities in the capital in terms of development and quality of buildings, Al Awar said. Strongly favouring the government step of the removal of five per cent rent cap in November 2013, he said it was a right measure as it has made the real estate market free and stabilised it after the shocks of the 2008 economic crisis.
Though some landlords increased the rents but there was a huge segment which couldn’t increase the rents, and in order to pay off their financial obligations, the removal of this rent cap was a must, he said.
[caption id="attachment_20733" align="alignleft" width="248"] Tasweek CEO Masood Al Awar[/caption] The new Rent Index in Abu Dhabi, slated to come into force in March 2014, will "bring a lot of transparency in the real estate sector and will build trust and confidence between the landlord and tenant," Masood Al Awar, CEO of Abu Dhabi-based property management firm Tasweek, said in an interview with Khaleej Times published on February 11. The Rent Index was an answer to the problem tenants were facing, AL Awar said, adding that it will provide guidance to the stakeholders, as they can refer to it in disputes....
The new Rent Index in Abu Dhabi, slated to come into force in March 2014, will “bring a lot of transparency in the real estate sector and will build trust and confidence between the landlord and tenant,” Masood Al Awar, CEO of Abu Dhabi-based property management firm Tasweek, said in an interview with Khaleej Times published on February 11.
The Rent Index was an answer to the problem tenants were facing, AL Awar said, adding that it will provide guidance to the stakeholders, as they can refer to it in disputes. The rent index, he assumed, might have various components to be take care off to justify any increase. It could be location of the property, the facilities it offers, amenities, and services and of course the quality of infrastructure around it, the paper wrote.
The zoning system will help differentiate between different localities in the capital in terms of development and quality of buildings, Al Awar said. Strongly favouring the government step of the removal of five per cent rent cap in November 2013, he said it was a right measure as it has made the real estate market free and stabilised it after the shocks of the 2008 economic crisis.
Though some landlords increased the rents but there was a huge segment which couldn’t increase the rents, and in order to pay off their financial obligations, the removal of this rent cap was a must, he said.
