Question: What are the rules regarding rent increases in Dubai? Is there a cap on how much rent can be raised? If I believe my landlord has increased the rent unfairly, what legal options do I have and how does the process work?
Answer: In Dubai, the allowed rent increase is regulated based on the average rental values in the area. According to Decree No. (43) of 2013, the percentage increase depends on how much the rent of a property is below the average rent for similar properties in the same area. The rent increase guidelines are as follows:
- No increase if the rent is up to 10% below the average.
- A 5% increase if the rent is 11-20% below the average.
- A 10% increase if the rent is 21-30% below the average.
- A 15% increase if the rent is 31-40% below the average.
- A 20% increase if the rent is more than 40% below the average.
The "average rental value" is determined using the Rent Index of the Emirate of Dubai, as approved by the Real Estate Regulatory Agency (RERA), in line with the Dubai Rent Increase Law.
RERA is also responsible for overseeing the rent increase and decrease processes for residential properties, taking into account the prevailing economic conditions. According to Law No. 26 of 2007, landlords and tenants may negotiate rent changes when renewing the lease. If they cannot agree, the Rental Dispute Centre (RDC) may intervene and determine a fair rent based on established criteria.
Any changes to the rent terms must be communicated by either party at least 90 days before the lease expires, unless both agree otherwise. In case of disputes, the RDC will assess and decide the fair rent based on the circumstances.
Therefore, your landlord can only increase rent if it aligns with the RERA index and after providing a 90-day written notice. If there is disagreement, the RDC can resolve the dispute.
News Source: Khaleej Times
