Dubai Ruler His Highness Shaikh Mohammed bin Rashid Al Maktoum has approved a most recent Real Estate Regulatory Authority's (RERA) price index for controlling unnecessary rent hike. The move is in line with Dubai's plan to stabilize the crisis ridden real estate market of Emirates by introducing new formula for rent index besides promoting landlord-tenant relationships.

The earlier law passed in January 2009 was intended to use in conjunction with an index of the Real Estate Regulatory Agency (RERA). Mahmoud Hesham Al Burai, RERA Director of Development said that the new law would work on the same principal as the rental index.

Official news agency WAM stated, "For properties rented in 2009 or earlier, the maximum increase in rent shall be as per the previous decree for 2009. The decree approves the (RERA) price index, which shall be followed as the reference for setting any increase in rent values in 2010."

Arnel G. Ramos, a Dubai resident, hoped that the new legislation would prove beneficial for Expatriates and concerned builders and tenets would follow it rigorously. The recent decree allows 5 per cent rent hike subjected to guidelines by RERA.