New database will help regulate rent prices in Dubai
A new star rating system for determining rental rates for properties in Dubai is expected to be ready by the end of 2017, it has been confirmed.
The Dubai Land Department (DLD) said that the rating system will apply to all residential and commercial buildings completed before 2010.
It also announced that it is almost halfway through a two year building survey to compile a database of information for every unit in the emirate with all these policies designed to make Dubai real estate markets more transparent.
So far the new Building Classification System (BCS) has surveyed 55,601 plots of land out of a targeted 139,306, around 40% of the work needed, which corresponds to 173,850 apartments and 18,277 villas.
The building survey, which is the biggest of its kind conducted in the emirate to date, according to the DLD, will help in terms of providing a more detailed method of calculating rental and service charge increases over the coming years.
‘This is a big project. We have 135,558 rental properties in Dubai and this work will help with regulating rental prices. At the moment when we do the index we do not know all the details about a building but when we finish this survey we will, for example, whether it is an old building, new building, low rise building, tall building. And we can devise a formula to calculate the rent,’ said DLD director general Sultan Butti Bin Mejren.
The database will also take into account additional building characteristics such as square footage, date of construction and quality of shared facilities, and will be the emirate’s first comprehensive real estate database.
‘These ongoing improvements help us to provide quality services, meet the various needs of our customers quickly and easily, and provide accurate data on residential units and land plots all across Dubai,’ said Mohamad Khodr Al Dah, senior director of the DLD’s Technical Affairs Department.
He added that the survey would increase the accuracy of real estate data and boost transparency in the industry.