When Can Landlords Increase Rent in Dubai?

For both landlords and tenants in Dubai, the annual contract renewal is often a time of negotiation and uncertainty. Landlords want to Maximise their yield, while tenants want to keep their costs predictable.

Fortunately, rent increases in Dubai are not a matter of guessing or aggressive bargaining. They are strictly regulated by Decree No. 43 of 2013 and governed by the Real Estate Regulatory Agency (RERA). This guide explains exactly when an increase is legal and how to calculate it.

TL;DR

• Notice Period: Landlords must give written notice 90 days before the contract ends to request a rent hike.
• The Cap: Rent increases are not arbitrary. They are capped at 20% maximum.
• The Trigger: You can only raise the rent if the current price is more than 10% below the market average for that specific area.
• The Tool: Always use the official RERA Rent Calculator to check the legal increase rate. Listings on property portals are not valid evidence for legal rent valuations.

The First Hurdle: The 90-Day Notice Rule

Before you even look at the numbers, you must look at the calendar. The most common reason rent increases are rejected is not that the amount is too high, but because the request was sent too late.

According to Article 14 of the tenancy law, if a landlord wishes to amend any term of the contract—including the rent amount—they must notify the tenant 90 days prior to the expiry of the contract.

• Scenario A: The contract expires on 31 December. The landlord emailed a rent increase request on 1 October.
  • Verdict: Valid notice (90+ days).
• Scenario B: The contract expires on 31 December. The landlord emailed the request on 15 October.
  • Verdict: Invalid notice. The tenant has the legal right to refuse the increase and renew the contract on the existing terms for another year.

The 5 Tiers of Rent Increase

Just because a landlord gives 90 days’ notice does not mean they can ask for any amount. Rent increases are capped by the government to prevent market volatility.

Decree No. 43 of 2013 establishes a specific “sliding scale” for permitted increases. The percentage allowed depends entirely on how the current rent compares to the average market rental value for similar properties in the same area.

1. No Increase (0%): If the current rent is up to 10% less than the average market rental value.
2. 5% Increase: If the current rent is 11% to 20% less than the average market rental value.
3. 10% Increase: If the current rent is 21% to 30% less than the average market rental value.
4. 15% Increase: If the current rent is 31% to 40% less than the average market rental value.
5. 20% Increase: If the current rent is more than 40% less than the average market rental value.

Important Note: The maximum possible increase is 20%, regardless of how undervalued the property is.

How to Find the “Average Market Value”

You cannot simply look at property listings on websites to determine the market value. Listing prices are often aspirational and not reflective of actual transactions.

To get the legal “Average Rental Value” mentioned in the Decree, you must use the RERA Rent Calculator.

1. Go to the Dubai Land Department website.
2. Select the “Rent Increase Calculator”.
3. Enter the details: Contract expiry date, property type (apartment/villa), area (e.g., Dubai Marina), and number of bedrooms.
4. The system will generate the official average rent and the permissible increase percentage.

The “Can I Increase Rent?” Decision Tree

Use this simple logic flow to determine if a rent increase is legal for your specific situation.

Step 1: Check the Timeline

• Did the landlord send a written notice 90 days before expiry?
  • No: The rent cannot be increased. The contract renews at the same price.
  • Yes: Proceed to Step 2.

Step 2: Check the Market Average

• Is the current rent significantly lower than the RERA Index average?
  • No (It is equal to or less than 10% lower): No increase is allowed.
  • Yes (It is more than 10% lower): An increase is allowed. Proceed to Step 3.

Step 3: Calculate the Cap

• Use the RERA Calculator to determine the exact percentage (5%, 10%, 15%, or 20%).
  • The landlord can increase the rent by this percentage maximum.

Dispute Resolution

If the landlord and tenant cannot agree on the new rent, the Tenancy Tribunal can determine the “fair rent”. The Tribunal will base its decision on the RERA criteria, the economic situation in the Emirate, and the condition of the property. However, in most standard cases, the RERA Calculator’s result is the final word.

FAQs

Does the 90-day notice apply to rent increases in Dubai?

Yes. According to Article 14 of Law No. 33 of 2008, if a landlord wishes to amend the rent, they must notify the tenant no less than 90 days prior to the date on which the tenancy contract expires, unless both parties have agreed otherwise in the contract.

What is the maximum rent increase allowed in Dubai?

The maximum permitted rent increase is 20%. This applies only if the current rent is more than 40% lower than the average rental value of similar units in the same area.

How do I calculate the rent increase in Dubai?

You must calculate the difference between your current rent and the average market rent using the RERA Rent Index. If the difference is less than 10%, no increase is allowed. If the difference is between 11% and 20%, a 5% increase is allowed, and so on, up to a maximum of 20%.

Can a landlord increase rent every year in Dubai?

Yes, a landlord can technically request an increase every year upon renewal, provided that the current rent is lower than the market average according to the RERA Index, and they provide the correct 90-day notice. There is no longer a law freezing rent for the first two years.