The Dubai Rent Increase Law is an essential regulation for tenants and landlords in the Emirate of Dubai.
Understanding this law is critical for ensuring fair rental practices if you’re a tenant or a landlord.
This article explains the key aspects of the law and how it impacts rent increases when leases are renewed.
It also provides practical examples to help clarify how 2025 rent increases are determined.
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Table of Contents
Dubai Rent Increase Law Rules and Details
The Dubai Rent Increase Law was introduced under Decree No. 43 of 2013, signed by the Ruler of Dubai, Mohammed bin Rashid Al Maktoum.
This law governs how much a landlord can increase rent when renewing leases, ensuring that rental rates remain fair and aligned with the average market rates in Dubai.
Determining Rent Increase
The law provides clear guidelines for calculating rent increases based on the current rent compared to the average market rate.
Below are the key rules that determine the percentage of allowable rent increase upon lease renewal:
No Rent Increase
If the current rent of a property is less than 10% of the average market rental rate, the landlord cannot increase the rent.
For example, if the average market rent for a one-bedroom apartment is AED 50,000 per year, and your rent is AED 45,000, your landlord is not allowed to increase your rent.
5% Rent Increase
If the current rent is 11% to 20% lower than the average market rate, the rent can be increased by 5%.
For instance, if the average market rent for a property is AED 50,000, and your current rent is AED 40,000, the landlord can increase your rent by AED 2,000 (5% of AED 40,000).
10% Increase
When the current rent is 21% to 30% below the average market rate, the increase can be up to 10%.
For example, if the average market rent is AED 50,000, and the rent you are currently paying is AED 38,000, the landlord can increase your rent by AED 3,800 (10% of AED 38,000).
15% Increase
If your rent is 31% to 40% lower than the market rate, the rent increase can be up to 15%.
For example, if the market rent is AED 50,000 and your rent is AED 35,000, the increase would be AED 5,250 (15% of AED 35,000).
20% Increase (if rent is more than 40% below market rate): If your rent is more than 40% below the average market rate, the landlord can increase the rent by up to 20%.
For instance, if the market rate is AED 50,000 and the rent is AED 28,000, the landlord could increase the rent by AED 5,600 (20% of AED 28,000).
These percentage increases ensure that rents gradually align with the market rates without unreasonable hikes that might financially burden tenants.
Learn How to Check Rent Increase in Dubai.
Scope of Application
The law applies to all landlords in Dubai, including those in public and private sectors, special development areas, and free zones like the Dubai International Financial Center (DIFC).
This uniform application ensures fairness across all rental properties, regardless of location.
Rent Index Dubai
The “Rent Index of the Emirate of Dubai” is a tool used to determine the average market rental rates across various property types.
Approved by the Real Estate Regulatory Agency (RERA), this index provides a benchmark that both landlords and tenants must follow when applying rent increases.
For example, if a two-bedroom apartment’s average market rent is AED 60,000 according to the Rent Index, the landlord must use this figure to calculate any allowable rent increase during the lease renewal.
Legal Publication and Enforcement
The law was officially enacted on December 18, 2013, and it was published in the Official Gazette. All landlords and tenants must comply with this law for any rental agreements in Dubai.
The law helps ensure that rent increases are reasonable and in line with market trends, preventing unfair rental hikes that could impact tenants’ ability to afford housing.
Legal Services Related to Dubai Rent Increases
If you’re dealing with rent increase issues, our law firm offers specialized legal services to help both tenants and landlords navigate the complexities of the Dubai Rent Increase Law.
Here’s how we can help:
Rent Dispute Resolution
Disagreements over rent increases are common, and our lawyers can help resolve these disputes effectively.
For example, if a landlord applies an increase that exceeds the legal limit or if a tenant feels the increase is unjust, our legal team can mediate and help settle the matter.
We work with both parties to ensure that rent increases align with the law, and if necessary, we can represent you at the Rent Disputes Settlement Center.
Lease Renewal and Rent Increases
Our legal experts can review lease agreements and advise tenants on whether the rent increase proposed by their landlord is legally acceptable.
Similarly, we assist landlords in determining if their proposed rent increases comply with the Rent Index and other legal guidelines.
For instance, if a landlord wants to increase rent by more than the allowed percentage, we can guide them on how to calculate the right increase according to the law, ensuring they don’t face legal repercussions.
Legal Advice on Rent Legislation
Understanding the Rent Increase Law can be complex, especially with various factors influencing rent determinations.
We provide detailed legal advice to help tenants and landlords understand their rights, obligations, and how to apply the Rent Index.
This includes advising on how to handle renewal notices, rent disputes, and rent calculations.
Learn about Dubai Rent Increase Notice Period.
Representing Clients in Rent Disputes
If you’re facing a rent dispute, whether as a tenant or a landlord, our team can represent you in legal proceedings.
We ensure your case is presented clearly and fairly to the Rent Disputes Settlement Center, aiming to achieve an amicable and legal resolution.
For example, if a tenant believes their rent increase is unlawful or too high, we can take the case to the Rent Disputes Settlement Center and help achieve a fair decision based on the law.
Legal Compliance for Landlords
Landlords must ensure that their rent increases comply with the Dubai Rent Increase Law to avoid fines or disputes.
Our firm offers services to landlords, ensuring they follow the law in every aspect of rent increase, including calculating the right percentage, using the Rent Index correctly, and drafting legally sound lease agreements.
Learn about Rental Laws in Dubai and read about Rental Case Dubai UAE. Also, Understand Security Deposit Rent Dubai.
FAQs about Rent Increase Regulation in Dubai
In conclusion, the Dubai Rent Increase Law is crucial in maintaining a fair and transparent rental market in Dubai.
Setting clear guidelines for rent increases ensures that tenants and landlords are treated fairly.
If you need legal assistance with rent increase issues or disputes, our law firm is here to help you navigate the complexities of the law and ensure compliance.
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A law graduate and legal writer focusing on UAE law, he became known for his ability to clarify complex legal concepts through his writings. His work simplifies the intricacies of the legal landscape in the Emirates, helping both locals and expatriates navigate their legal concerns.
