Dubai rent increase: What tenants can do if Rera index says no hike is allowed

Answer: Pursuant to your query, as you are a resident of Dubai, the provisions of the Dubai land laws and its amendment are applicable.

“When renewing Real Property Rent Contracts, the maximum percentage of rent increase for real property in the emirate of Dubai shall be as follows:

a. No rent increase, where the rent of the real property unit is up to 10 per cent less than the average rental value of similar units;

b. Five per cent of the rent of the real property unit, where the rent is 11 per cent to 20 percent less than the average rental value of similar units;

c. Ten per cent of the rent of the real property unit, where the rent is 21 per cent to 30 per cent less than the average rental value of similar units;

d. Fifteen per cent of the rent of the real property unit, where the rent is 31 per cent to 40 per cent less than the average rental value of similar units;

e. Twenty per cent of the rent of the real property unit, where the rent is over 40 per cent less than the average rental value of similar unit.”

The average rental value refers to the average rent for similar properties in Dubai. The average is determined in accordance with, the “Rent Index of the Emirate of Dubai,” which is approved by the Real Estate Regulatory Agency (Rera). This is in accordance with the Article 3 of the Dubai Rent Increase Law.

Further, the rent increase and decrease related to residential properties in Dubai is decided by the Rera. Article 10 of the Law No. 26 of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai states that “Rera shall have the authority to establish criteria relating to the percentage of rent increase in the emirate in line with the requirements of the prevailing economic situation in the emirate.”

At the time of renewing a rent contract, both landlord and tenant may discuss and amend the terms, including the rent. If they can’t agree, the tribunal may decide what the fair rent should be, based on specific criteria. Additionally, if either party wants to make changes to the rent terms, they are required to notify the other party at least 90 days before the rent contract ends, unless they have agreed otherwise. This is in accordance with the Article 13 and 14 of the Law No. 33 of 2008 Amending Law No. 26 of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai (the ‘Amended Dubai Tenancy Law’)

The Smart Rental Index, introduced by the Dubai Land Department (DLD) in 2025, stabilises rental prices and mitigates inflation by regulating rent increase and enhancing market transparency. The index provides standardised rental assessments across all residential areas. Rent increases are based on factors such as contract values and building classification, with landlords required to notify tenants 90 days before contract expiry for increases to be valid. If the index does not support the increase, or if the notification requirement is 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 the increase, but the new index does not, the renewal date will determine which index applies:

• The previous index will be applied if the contract was renewed before 2025.
• The new index will be enforced if the contract is renewed during 2025.

Based on the above, your landlord may only increase the rent of the rented property if the Rera index permits increment of rent. Further, your landlord may only increase the rent by giving written notice to you at least 90 days prior to renewal of rental period. In the event of a dispute with the landlord, you may have to approach the Rental Dispute Centre in Dubai to decide on the dispute.

Applicable law:

1.     Decree No. (43) of 2013 Determining Rent Increase for Real Property in the Emirate of Dubai

2.     Law No. 26 of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai

3.     Law No. 33 of 2008 Amending Law No. 26 of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai

Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, media, PO Box 11243, Dubai.

Disclaimer: The information provided above is intended for general guidance and does not constitute legal advice. It is recommended to seek formal legal counsel.