Qatar Real Estate News
Rent-hikes in Qatar sealed at 5% to 20%
The Cabinet passed a decision yesterday to place a 5 to 20 percent ceiling on rent hikes, and to freeze any hike in the existing rentals, for a two-year period, beginning 15th February. This move is introduced as a measure towards combating inflation prevailing in the country.
The decision has received the approval of HH Sheikh Hamad bin Khalifa Al Thani, and has been issued in line with rent Law No.4 of 2008, which was effective since 15th February this year. This law nullifies the earlier Law No.2 of 1975, which had a 10 percent cap on rent hike.
As per Article 1 of the new Law, the Landlords are not allowed to increase rents for a two year period for all the tenancy contracts signed after 1st January 2005 or after 15th February, when the new law was effective. After the two year freeze, the landlords are allowed to increase the rents by 20 percent annually for properties drawing a rent of less than QR2000. However, for properties drawing a rent of QR2000 to QR5000 per month, the rent cap is placed at 15 percent. However, for properties drawing monthly rents of QR5000 to QR10,000 the limit is fixed at 5 percent, and for those more than QR10,000 the rent is more than QR10,000.
This Law has been effective since 15th February. The Minister of Municipal Affairs and Agriculture, together with other concerned authorities will report to the Cabinet regarding implementation of the decision and its consequences. A report will be submitted after six months of completing the two-year period mentioned in Article 1 of the decision.
The new rent law specifies that unless a tenant wishes to renew his contract, all current contracts will remain legally valid until 14th February 2010, provided, the tenant continues to occupy the same property.
All such current existing contracts should be registered by the owners at the offices of Ministry of Municipal Affairs and Agriculture (MMAA), and, in the meanwhile, the landowners will have to pay one percent of the annual rent amount as registration charges.
A rent dispute settlement committee would be set up at the MMAA, and it would be illegal for anybody to sublet rented property without a written permission from the owner.
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