A tenant who receives a notice of rent increase for an apartment in Dubai can refer to Dubai legislation, as the percentage increase in rent depends on the average growth rate of prices for similar properties in a specific area.
According to Article 1 of Decree No. (43) of 2013, which defines rent increases for real estate in the Emirate of Dubai, the maximum percentage increase is set based on the ratio of the current rental rate to the average market value of comparable properties:
- No increase if the rent is less than the average by 10 percent or less.
- Five percent if the rent is less than the average by 11–20 percent.
- Ten percent if the rent is less than the average by 21–30 percent.
- Fifteen percent if the rent is less than the average by 31–40 percent.
- Twenty percent if the rent is less than the average by more than 40 percent.
The average rental cost is determined using the 'Dubai Emirate Rental Index,' which is approved by the Real Estate Regulatory Agency (RERA), according to Article 3 of the same Rent Increase Law.
Furthermore, the decision on increasing or decreasing rent for residential property in Dubai is made by RERA. Article 10 of Law No. 26 of 2007, which regulates the relationship between landlords and tenants in the Emirate of Dubai, grants RERA the authority to establish criteria for the rent increase percentage in accordance with the economic situation in the emirate.
When renewing a lease agreement, both the landlord and the tenant can discuss and make changes to the terms, including the rent amount. If they do not reach an agreement, the tribunal may determine a fair rate based on established criteria. Additionally, either party wishing to change the lease terms must notify the other party at least 90 days before the contract expires, unless otherwise agreed.
In 2025, the Dubai Land Department (DLD) introduced the Smart Rental Index to stabilize prices and reduce inflation by regulating rent increases and increasing market transparency. This index provides a standardized assessment of rent across all residential areas. Rent increases are based on factors such as contract value and building classification, and landlords must notify tenants 90 days before the contract expires for the increase to be valid.
If the new index does not support an increase, or if the notification requirement was not met, the previous index applies depending on the contract renewal date. In cases where the landlord provided the required 90-day notice, and the previous index supported an increase but the new index does not, the renewal date is decisive: the previous index applies if the contract was renewed before 2025, and the new index is implemented if the contract is renewed during 2025.
Thus, a landlord can only increase the rent if the RERA index permits such an increase, and only after providing written notice to the tenant at least 90 days before the lease period renewal. In case of a dispute with the landlord, the tenant can apply to the Dubai Rental Dispute Resolution Centre.