ABU DHABI Dec 13 The emirate of Abu Dhabi
reintroduced a 5 percent cap on annual rent increases on Tuesday
in an effort to protect tenants from unjustified hikes, after
abolishing the cap three years ago.
After 18 months of relatively stable conditions, real estate
prices showed signs of declining in the three months to June 30
as low oil prices slowed Abu Dhabi's economy, consultancy JLL
said in July.
"Rents are going down, so to be fair to everyone, there is a
cap of 5 percent now. This way tenants will be protected from
some landlords" who try to raise rents arbitrarily against the
trend, an Abu Dhabi Municipality official told Reuters,
declining to be named.
(Reporting by Stanley Carvalho, Editing by Andrew Torchia)