Dubai is driven by expatriates; foreigners attracted by new opportunities who have made the city their home. Comprising over 60% of the population, they contribute significantly towards the country’s economic growth. To cater to this demand are residential apartment units – upwards of 20,000 – added to the Dubai skyline every year. The resultant dynamics manifests a play of supply and demand that has rentals fluctuating steeply, affecting renting patterns. Owners have largely been the beneficiaries of this trend. Dubai’s new rental laws giving tenants unprecedented rights, is all set to shift the balance in their favour.

Property prices across Dubai work within a high degree of unpredictability. Renting is the top real estate income generator in the country, with mortgage coming a close second. In 2017 alone, 13,000 apartments and 3,600 villas were rented out, with Asteco predicting an even bigger increase this year. Economic reforms, innovative technological strategies and the Smart Dubai initiative have been the main instigators for this change, attracting workers from across the globe. Foreseeing this influx, the Dubai government has through the years created strong policies to safeguard the rights of its citizens.

The Dubai rental market has a clearly defined set of regulations. Residential rentals involve remitting a security deposit of 5% of the annual rent, an amount subsequently refunded upon termination of contract. Rents for the entire year get paid well in advance, or in four installments as mandated. While the living is often hassle-free, problems arise during the time tenants vacate. Studies across various rental properties, reiterate how landlords lengthen this process. The deposit amount is either withheld till the next tenant arrives, deducted citing property change/damage or delayed indefinitely for various reasons.

The tenancy law of 2007 was the first step towards protecting tenant rights. Mandating the tenant-owner relationship in a written contract to be registered with RERA, it took into account both entities during disputes. Any termination of contract required a period of three months to vacate or the landlord’s compulsorily furnishing of a ‘just cause ’notice for legal eviction. Article 20 of Law No. 26 of 2007 also made it possible for the landlord to withhold a maintenance deposit amount, provided he refunded the original deposit.

The ambiguity surrounding the security deposit amount has had many tenants forfeit a large fee as maintenance charges due to tangible/intangible property damage. Without proof and with no clarity, tenants are often left at a disadvantage. To correct this, the Dubai Land Department is currently working on adding statuettes to the tenancy law. This involves a new Security Deposit Form that will ease the tenant refunding process. As a mandate, landlords will have to refund the security deposit to tenants within a reasonable time, following which any complaint from the tenant can get them into trouble.

This decision is touted to have far reaching and wide implications. By handing over power to the tenant, rental dealings hope to become more transparent and streamlined. The government is also looking at regulating the real estate sector, allowing authorities to track real estate rental indices and forge greater accountability by everyone concerned.