Abu Dhabi — Freezing rent increases for residential units for at least a temporary period and fixing rents according to locality are among steps authorities in the UAE are considering to rein in rising inflation.

A committee has discussed this option, Butti Al Qubeisi, Executive Director of the Department of Planning and Economy in Abu Dhabi, told Khaleej Times on Sunday. The committee has representatives from the Ministry of Economy, the Department of Planning and Economy in Abu Dhabi and the Statistics Centre of Dubai as members.

“The committee is also examining the reasons for high inflation in the country, including the part played by the five per cent ceiling on increasing the rents annually which is in force now,” he said.

Rent is the major factor behind the high inflation rates. A decision about freezing rent hikes would be taken in the near future, he said.

Another official in the Rent Disputes Settlement Committee, who did not want to be named, said that Abu Dhabi was seriously considering this step.

A report prepared by the Information and Decision Making Support Centre in the Abu Dhabi Chamber of Commerce and Industry recently had called for laying down a clear policy to combat inflation and freeze any increase in the existing value of rents and prices of commodities to rein in inflation at reasonable rates.

Khaleej Times Online - Rent Freeze Pondered to Curb Inflation

Other property related links:

Property prices in Dubai to fall

Dubai property makes a decline