Dubai Rental Increase Law: What Landlords and Tenants Should Know

Issues around landlord rights to increase the rent value are among the most pressing concerns in Dubai’s tenancy relationships. Since the interests of both parties often conflict, one’s benefit usually means the other’s loss. That’s why the information we provide here is equally useful for tenants and landlords in Dubai; it helps both sides understand their rights, limitations, and opportunities better.

Permissible Frequency of Rent Increase

In Dubai, once a tenancy contract is signed and rent is fixed, landlords are not entitled to raise it whenever they want. By law, rent can only be increased once a year and only at the time of contract renewal. This means a tenant can enjoy the agreed rent throughout the contract period, without worrying about mid-term hikes.

If a landlord attempts to change the rent value during the contract, it is considered unlawful, and tenants have the right to file a complaint with the Dubai Rental Dispute Settlement Committee to protect their interests.

Another important regulation is the 90-day notice period. A landlord must notify the tenant at least 90 days before the contract expiry date if they intend to raise the rent. Failure to do so means the landlord cannot apply the increase until the next renewal cycle.

How Much Can a Landlord Increase the Rent in Dubai?

The second issue concerns the maximum rent increase allowed under the Dubai rental increase law. Here, landlords have limited flexibility, as any increase must comply with legislation. The law sets a rental index that determines permissible caps depending on how the current rent compares with the average rental prices in the market.

• 0% – if the current rent is less than 10% below the average market rate
• 5% – if 11–20% below the average market rate
• 10% – if 21–30% below the average market rate
• 15% – if 31–40% below the average market rate
• 20% – if more than 40% below the average market rate

To clarify, you don’t need to calculate this yourself. The Real Estate Regulatory Agency (RERA) publishes the RERA Rental Index, available on the Dubai Rest App, which specifies benchmark rates for every property type and area in Dubai. Both tenants and landlords should refer to this before negotiating a rent increase.

Is My Building Rent Controlled?

In short: yes, existing tenancy contracts are subject to rent control.

However, there is an important distinction:

• For an initial tenancy contract, landlords are free to set the rental price as they wish, even above the market average, if a tenant agrees.
• For renewals of existing contracts, rent control applies. Increases are capped by the percentages outlined in the Dubai rental increase law and must follow the RERA index.

Legislation Governing Rent Control in Dubai

Several legal instruments regulate rental relationships:

• Law No. 26 of 2007– defines RERA’s authority to regulate the rental index.
• Law No. 33 of 2008 – requires landlords to pre-notify tenants about rent increases with a minimum 90-day notice.
• Decree No. 43 of 2013- Assured Tenancy– specifies the permissible escalation percentages.

Assured Tenancy vs. Assured Shorthold Tenancy

To understand rent control in Dubai, it’s important to distinguish between tenancy types:

• Assured tenancy (long-term contracts, at least 6 months, registered with EJARI) → Rent increase rules apply. Landlords cannot arbitrarily raise rent, and they must follow notice and RERA index guidelines.
• Assured short hold tenancy (short-term rentals, from 1 day up to 6 months, not registered with EJARI) → Not regulated under rent control. In this case,     landlords have more freedom and may increase rent at their discretion, even during the tenancy. However, this offers tenants less security.

Final Word

To sum up, both landlords and tenants must understand the Dubai rental increase law to protect their rights. Lease renewals, rental benchmarks, the RERA rental index, and the Dubai Rest App are key tools for determining how much rent increase is allowed in Dubai.

At BSO, we ensure compliance with these regulations when managing properties. Whether you’re a landlord seeking to maximize returns or a tenant wanting fair treatment, our Property Management Services guarantee transparent and hassle-free tenancy management.

Frequently Asked Questions (FAQs)

Q1. Can a landlord increase rent every year in Dubai?

No. Rent increases are only allowed during lease renewals and must comply with the Dubai rental increase law set by RERA‍

Q2. How can tenants check if a rent increase is legal?
Tenants can use the Dubai Rest app to check the official RERA Rental Index and verify whether the increase matches the law.

Q3. What should I do if I disagree with my landlord about a rent increase?
You can file a case with the help of BSO experts, which ensures fair treatment for both tenants and landlords.

Q4. Is the Dubai rental increase law applicable across the UAE?
The law applies specifically to Dubai. Other emirates may have different rent regulations for property in the UAE.

Q5. How much notice must a landlord give before increasing rent?
Landlords must provide at least 90 days’ notice in writing before the end of the tenancy contract if they intend to increase rent.

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