Step-by-step guide to registering shared accommodation in Dubai

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.

A new co-living law in Dubai allows residents to terminate their lease before the contract expires and demand a refund of prepaid rent.

According to Law No. 4 of 2026, the tenant has the right to terminate the lease agreement at any time, provided they notify the landlord in a timely manner. The minimum notice period is 30 days, but if the contract specifies a longer period, that one applies.

This provision is part of Dubai's new regulatory framework for co-living, although detailed requirements and licensing procedures are still being implemented. Previously, the Dubai Municipality informed Khaleej Times that the law's details would be announced, and a new service would be added to the Service Guide to simplify co-living licensing.

The law grants residents who terminate the contract according to the notification terms the right to request a refund of prepaid rent. However, the law gives the landlord the right to deduct an amount equivalent to one month's rent from the prepayment before returning the balance.

This rule is particularly relevant for those who have paid rent several months in advance. Under the new co-living system, rent is defaulted to be paid monthly unless otherwise agreed upon by the tenant and landlord. Furthermore, utility bills for electricity and water are included in the rent unless the parties agree otherwise.

The law provides a special mechanism for residents who do not receive the due funds. If the tenant does not recover the amount within 30 days after notifying the landlord of the refund request, they can file a petition with the Enforcement Court to recover the rent.

The Rental Disputes Center has exclusive jurisdiction over disagreements concerning the rights and obligations established by the co-living law. The method of providing notice may also be significant in case of subsequent disputes.

The law stipulates that termination notices can be delivered via a notary, sent to the email registered in the lease agreement, handed over in person, or delivered by any other legally approved method. Therefore, residents should ensure that the notice is submitted using one of the recognized methods, rather than relying on an informal verbal conversation.

Another important protection for co-living residents is contained in the law: a change of property owner does not automatically terminate the contract. If the co-living property transfers to a new owner, the existing lease agreement remains valid, and the resident has the right to continue residing there according to the contract signed with the previous owner.

Co-living agreements must specify the lease term and remain valid until its end unless terminated in accordance with the law. These provisions are part of a structure that formalizes co-living in Dubai through permits, registered lease agreements, living standards, and specific rights and obligations for owners, authorized institutions, and residents.