Dubai's ruler Sheik Mohammed bin Rashid Al Maktoum issued Wednesday a new decree to set limits for rent increases in the emirate in 2010. The rent caps will be similar to those set this year and will be become effective immediately, according to a statement from the ruler's office. Dubai lowered the rent cap by two percentage points to 5 percent from 7 percent in 2008 for those paying between 25 percent and 35 percent below the rent index level of the Real Estate Regulatory Authority (RERA). It has maintained it since then. According to the new decree, the rent cap will be 10 percent if the 2009 rent is between 36 percent and 45 percent below the rent index level, and 15 percent if the rent is between 46 percent and 55 percent below the index level. Those paying more than 55 percent below the rent index level, will face a 20 percent rent cap, it added. Meanwhile, the total value of land transactions in Dubai on Wednesday peaked at AED305.68 million, of which sales exceeded AED180.43 million. The total value of mortgages during the period was AED125.24 million, according to the Land Department. A total of 9 sale transactions were registered with the Department by the end of the day, the most valuable of which was a plot in Nad Al Shiba that was sold for AED34.0716 million. The next two most prominent sales saw a second plot in Al Ras acquired for the sum of AED20 million and another in Palm Jumeirah for AED7.8 million. The Ranches area was the most active in terms of the day's sales, with some 2 transactions. Al Raffa followed it with 1 sale. During the period, Nad Al Shiba recorded the highest turnover by value, at AED34.07 million, followed by the Al Ras area, AED20 million, and Palm Jumeirah area, AED7.8 million. The biggest area sold was the 56786.08 sq ft in the Nad Al Shiba area, which went for AED 34.07 million. A 14800 sq ft plot in the Muhaisanah Third Area was acquired for AED2.37 million, while 8012 sq ft of Ranches was disposed of for AED2.71 million. During the period under review 20 mortgages worth AED103.94 million were registered, the most significant of which as the AED63.44 million for an area at Port Saeed. There was another for AED8.58 million on an area in Nad Al Shiba. Apartments and villas in freehold areas witnessed the registration of 83 sales transactions out of which 82 were for apartments for a total of AED90.11 million and 1 for villas at a total sum of AED1.7 million. A total of 9 mortgages for AED12.04 million were registered on villas and apartments.
