Qatar has just imposed a rent freeze for two years on all rentals in the country. According to the National Bank of Abu Dhabi this would decrease inflation by about 40%. The Qatari Cabinet has just decreed that landlords would not be able to increase rents on all contracts signed after Jan., 1st, 2005.
In the UAE, Dubai & Abu Dhabi both capped rent increases 5% annually down 2% from the previous year. The rent ceiling did not encompass new tenants thus creating large gaps in rents recived from neighboring apartments. The limited success of the ceiling has prompted Qatar to impose a similar method to combat inflation a decision was made to set a maximum of 10% increase in rentals per year. Apparently, the incremental increases were not sufficient in avoiding inflationary pressures thus the decree to freeze all rents.
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