Confusion reigns for Abu Dhabi residents as rent cap is ditched

Confusion reigns for Abu Dhabi residents as rent cap is ditched

Abu Dhabi residents have been left confused over the removal of the emirate's rent cap.

As the rent court in the capital convened for its first session since Thursday’s announcement, many attending the court confessed they didn’t understand the new ruling.

The emirate previously had a five per cent rent cap in place, similar to Dubai, but the Abu Dhabi Executive Council ruled on Thursday that the cap is to be abolished.

“I think that if there is no longer a five per cent cap then landlords may decide a lower figure. Maybe they cannot go higher than five per cent still,” said Egyptian Hassan Nouri, who was fighting a case against a property company that has accused him of subletting his apartment.

However, others were quick to correct him.

“Of course they can raise the rent. If there is no cap, they can charge what they like,” said Andy Hillman, who went to court after his landlord tried to have him removed in favour of another tenant.

“This really has put a spanner in the works,” Hillman added. “If you are arguing that your landlord cannot turf you out then you don’t feel very safe knowing that the only protection you had is suddenly gone.”

The abolishment of the cap caught the rent court by surprise. Senior officials told 7DAYS earlier this week that they are still awaiting a copy of the new ruling, but all current rental contracts in the emirate could be void.

sean@7days.ae

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