Qatar to cap rents

This year, Qatar will lower the rent cap from 10% to 7% in an effort to curb inflation.

In the next few days, Qatar could enact legislation that will lower the amount that the state's landlords can raise rent. Inflation has begun to take a heavy toll against the region. Since 2002 the economy has seen incredible gains due to the sale of oil, but rising costs of basic needs has also increased.

Global demand having stressed the commodities market means that even every day food items are becoming more expensive. Add to that the decreased vacancy rate and lack of new units and it is easy to see how Qatar has faced 13.7% inflation in September. After that rent rates surged to make up the difference.

To counteract that, Qatar could lower the current 10% maximum cap by three points. This new 7% cap would be in effect for two years and could very well become law sometime this week. The government sees the rent cap as a way to help curb inflation.

This move comes on the heels of similar legislation in the UAE. The 2007 rent cap of 7% was lowered to 5% in 2008. In 2006, the UAE recorded inflation of 9.3%.

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