While on Friday 28 December 2007 the Dubai government lowered the rent cap to five per cent, Fujairah’s rent cap is 15 percent, the same as that in Ras Al Khaimah.
The report in Gulf News 30 December 2007, says that the rent cap (c.f. 5% in Dubai, 7% in Abu Dhabi) applies to new tenants and to those whose rents were not increased last year.
The setting of the rent cap is an attempt to rein in the soaring rental increases and bring some stability to the rental market.
Newcomers currently looking for 3 bedroom (family villas and apartments) are finding it tough in Fujairah.
The decision to turn the Faseel Towers into hotel accommodation is sending scores of existing residents searching for alternative accommodation while newcomers to the city are faced with few options. There are some apartment towers in the process of being built but rooms appear to be some time before they will be ready for residents.
Many other Fujairah renters have experienced an increase or are bracing themselves for a change in the new year.
See also: Fuad Ali, ‘Fujairah Residents feel the heat as rents soar on heavy demand’, Gulf News 1 January 2008.
Dr. Geoff Pound
Image: Fujairah Towers.