The decree aims to regulate the relationship between tenants and landlords and chart a legal framework for this matter.

Rent increase caps for 2010 will be set at the same rates as for 2009, as per the decree issued on rental cap in 2009. The decree endorsed the Real Estate Regulatory Authority (RERA) rent index as the main reference to determine the average rent on which the rental increases in 2010 will be decided.

Rental increases are permissible only if the property is more than 25 percent below the average index price. If the rent charged was 26 percent to 35 percent less than the average rent for similar property, the maximum increase shall be equivalent to 5 percent of rent value for the year 2009.

If the rent charged was 36 percent to 45 percent less than average rent for similar property, the maximum increase will be equivalent to 10 percent of rental value for the year 2009.

Similarly if the rent was 46 to 55 percent less than average rent for similar property, the maximum increase shall be equivalent to 15 percent of rent value for the year 2009.

If the rent was 56 percent to 55 percent less than the average rent for similar property, the maximum increase shall be equivalent to 20 percent of rent value for the year 2009.

The decree will get effective from the date of issuance, and will be published in the official gazette.