UMM AL QUWAIN, Oct 16: The General Secretariat of Municipalities (GSM) is studying a draft law to issue a comprehensive rent law for all emirates, as a step towards a federal decree to put an end to the spiralling rents.
According to a source, the new law will regulate the relation between tenants and landlords and limit annual rent hikes.
The law will also address the reconciliation period after which the landlord would have the right to get the rented property vacated. The source added that the law would stipulate harsher penalties for violators. The emirate has been witnessing major rent hikes.
During the last three years it witnessed the most amount of hikes, which were reflected in the number of cases and complaints handled by the Rent Disputes Settlement Committee.
Attorney Nasir Ahmad Al Osaiba, who is a member of the Rent Disputes Settlement Committee, said that in the next three years the emirate is likely to witness a huge decline in the real estate market and added that despite the rent hikes, the emirate is witnessing a state of stability in the tenancy sector.