His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has issued a decree on property rent cap in 2010 to ensure the stability of property market in the emirate.

The decree sets rent increase caps for 2010 at the same rates for 2009 and earlier, according to the decree issued on rental cap in 2009.

Interactive Map: Dubai Rental Index for 2009

The decree endorsed the Real Estate Regulator Authority (Rera) rent index as the main reference to determine the average rent, upon which the rental increases in 2010 will be decided.

Increases can only occur if the property was more than 25 per cent below the average index price. If the rent was 26 per cent to 35 per cent less than the average rent for a similar property, the maximum increase shall be equivalent to 5 per cent of rent value for the year 2009. 

If the rent was 36 per cent to 45 per cent less than the average rent for a similar property, the maximum increase shall be equivalent to 10 per cent of rent value for the year 2009. 

If the rent was 46 per cent to 55 per cent less than the average rent for a similar property, the maximum increase shall be equivalent to 15 per cent of rent value for the year 2009. 

If the rent was 56 per cent to 55 per cent less than the average rent for a similar property, the maximum increase shall be equivalent to 20 per cent of rent value for the year 2009. 

The decree shall take effect from date of issuance and is to be published in the official gazette.