STAMN
What about rents below the RERA index?
Source: | Author:STAR AND MOON | Published time: 2024-09-11 | 42 Views | Share:
It is understood that the Real Estate Supervision Authority (RERA) of the Ministry of Land in Dubai has introduced a rental index, and lessors can adjust rents based on the rent index and market conditions, because lessors expect to obtain more real estate investment income during the hot property market.

https://mp.weixin.qq.com/s/QUUJIHTFGDZPS7UDWAFO0Q



In most cases, the interests of tenants in Dubai are protected by law more than those of the lessor, and some tenants do not expect to increase the rent in order to increase the cost of housing, and the rental yield is low, which leads to forcing the lessor to evict the tenant, so what are the legal requirements to be followed before eviction?


Image


In Dubai, "eviction tenants must provide valid reasons as stipulated in the tenancy law, such as rebuilding the house or family use of the house. "A lessor cannot issue an eviction notice to a tenant because the rent is lower than the RERA rent index or market rent. The reason for evicting the tenant must be reasonable and in accordance with laws and regulations.

Landlord in Dubai

12 months' notice must be given to tenants prior to eviction▼

Given that this is a landlord's market, many landlords find that tenants are violating the rules, i.e., using this to evict tenants and re-lease them to new tenants, so as to obtain rental yields that are close to the market.

Image




Legal norms

In accordance with Article 25 of Law (26) of 2007, the lessor may request the eviction of the lessee from the immovable property before the expiration of the term of the lease contract in the following cases:

A. The lessee fails to pay all or part of the rent within thirty (30) days from the date on which the lessor sends the notice of payment to the lessee;
B. The lessee subleases the immovable property or any part thereof without the written consent of the lessor. In this case, the sublessee will be evicted and will have the right to claim compensation from the lessee;
C. The lessee uses or allows others to use the immovable property for illegal purposes or for purposes contrary to public order or morality;
D. The lessee alters the immovable property, endangers the safety of the immovable property, makes it impossible to restore the immovable property to its original state, or intentionally, due to gross negligence, fails to exercise reasonable care or allows others to cause damage to the immovable property;
e. The lessee uses the immovable property for purposes other than the purpose for which it is rented, or uses the immovable property in a manner contrary to the planning, construction and land use regulations in force in the emirate;
F. Where the immovable property is expropriated, provided that the landlord can prove this through a technical report certified by the Dubai Municipality;
G. If the Lessee does not perform its obligations under this Law or any provision of the lease contract within thirty (30) days from the date on which the Lessor gives notice to it of the performance of such obligation or provision, the Lessor's decision on the performance of such obligation or provision shall be terminated.
Image

After the expiration of the lease contract, the lessor may request the eviction of the tenant from the lessor's premises if:

Lease contract expires

(a) Demolition and rebuilding of immovable property by the competent government departments in accordance with the requirements of the urban development of the emirate;
B. The condition of the property requires a full renovation or comprehensive maintenance and cannot be carried out in the presence of the tenant, provided that the condition of the property is verified by a technical report certified by the Dubai Municipality;
C. The lessor wishes to demolish the immovable property for reconstruction or to add any new building to such an extent that the tenant is unable to use the immovable property, provided that the lessor obtains the required permits from the competent authority;
D. The lessor wishes to recover the immovable property for his personal use or any of his immediate family members.
Image

However, in each of these four cases, the Lessor must notify the Tenant of the reason for eviction at least ninety (90) days prior to the expiration of the Lease Agreement.

12 months' notice should be given if there is no breach of the lease; For cases of eviction violations, tenants may receive 30-90 days' notice. Otherwise, tenants can file a RERA complaint with the Rent Dispute Resolution Centre of the Dubai Land Department.

Rental pricing situation


Regional rents fluctuate over time, and lessors adjust their pricing strategies based on the local real estate market and consult with real estate agents.

Image

Company Profile

Dubai-STAR AND MOON Real Estate Company▼

Dubai STAR AND MOON Real Estate is an independent overseas branch of Xinwan Holdings, a group company headquartered in Nanchang, Jiangxi, China, with 30 years of comprehensive development experience.

Xinwan Holding Group is a comprehensive and diversified large-scale growth group company, which was founded in 1993 and is headquartered in Shenzhen, Guangdong-Hong Kong-Macao Greater Bay Area. The Group has a number of core business subsidiaries, such as Shenzhen Causeway Bay Cultural Tourism Group Co., Ltd., Jiujiang Causeway Bay Investment Co., Ltd., Shenzhen Shifang Commercial Management Co., Ltd., Fuhang Commercial Management Co., Ltd., etc.

    The Group has always adhered to the corporate mission of "lighting up the city and creating a better life", continued to practice the brand concept of "making a new life more beautiful with heart", implemented the development goal of "shaping new landmarks in the city and activating a new life of cultural tourism", and gradually moved towards the innovation of a comprehensive cultural, commercial and tourism group in collaboration with the four core sectors of commercial development and operation, cultural and tourism landmark building, comprehensive real estate development and asset management, so as to build a sustainable and upward urban value and a better life.

    Since its development, the group has invested more than 4 million square meters in development area, nearly 1.2 million square meters of self-owned properties, and invested more than 30 billion yuan in foreign countries.

Representative Cases:

Image

▲Lushan ° Causeway Bay Square

Image

▲Shenzhen ° Rong Yue Shifangli

Image

▲ Lotus ° Causeway Bay Plaza

Image

▲ camphor tree ° three emperors

......

    STAR AND MOON Real Estate - Xinwan Group's overseas company, the future business development model is "driven" by four modules, namely real estate development and operation, commercial investment and operation, real estate sales and leasing, and immigration and study abroad services, and the four major sectors assist each other and integrate and develop each other; The company is committed to building the four core sectors of Dubai's real estate-related chain business, establishing a solid professional foundation, and providing customers with a full range of products and services.

    In 2024,STAR AND MOON Real Estate will develop with the four major business models of "development + marketing + business + immigration and study", first breaking through to business, with the help of commercial operations, settling in Dubai with an asset-light model, endorsing customers and peers in the form of asset-light, followed by real estate development, taking asset-heavy development as a flashpoint, demonstrating the company's professional ability and financial strength, so that more customers and peers can trust the company, and re-marketing, immigration, and study abroad will attract traffic, and push the company's development to a new height.

New projects

DUBAI-STAMN ONE【tentative name】▼

STAMN ONE [tentative name] is a new comfort-class residential building developed and built by STAMN in Dubai-Jumeirah Garden City.

The project is planned and designed with 77 sets, with a small number of households and high privacy; There are studio441-518Sqf and 1BR828-1439Sqf. The project creates exclusive theme landscapes, fitness facilities, swimming pools and other complete living facilities for the owners. Jumeirah Garden City is the heart of Downtown Dubai, with convenient transport links and lifestyle facilities, and a 10-minute traffic radius to the city centre, the beach, the old city centre, the financial centre and the MRT station entrances. Residents living here can fully enjoy the bustling city of Dubai, a vibrant and cosmopolitan city.

Image

▲Project renderings