2009-11-16 16:55:51
WAM Abu Dhabi, Nov 16th, 2009 (WAM)--The period of the tenancy contract has been extended to five years instead of four, as per article 20 of law number 6 of year 2009, issued by HH General Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces and Chairman of the Executive Council.

The decision also stated that the annual rent increase will remain at five per cent.

The move comes to stabilise the property market as many new residential and commercial units are expected to enter the market.

In related development, the Executive Office also issued decision No. 76 for 2009, setting up a panel to study the economic and social dimensions of the legal regulation of the tenancy contracts. It will study the economic, social and financial effects of any amendments on tenancy contracts and the property market.

The panel's report may usher in introduction of important amendments to further streamline property leasing in the emirate.

WAM/MN