Question: Can you explain how Dubai's rental index works? I have received a rent increase notification that I feel is unfair. What should I do next? How do I challenge it and how does it work after that?
Response: Pursuant to your queries, as you are residing in a rented apartment in Dubai, the provisions of Law No. 26 of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai (the ‘Dubai Tenancy Law’) and those of 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’) are applicable.
Rent increase and decrease related to real estate properties are decided by the Dubai Real Estate Regulatory Agency (Rera) based on a rent calculator it developed and operates.
Article 10 of the Dubai Tenancy Law states:
“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.”
Based on the aforementioned provision of law, you may check the rent value of your apartment through the Rera rent calculator on the website of the Dubai Land Department.
In the event you find the rent for a similar apartment in your residential area is not in line with what has been offered to you, you may approach your landlord or the real estate agent and inform them about the same.
If the landlord or the real estate agent disagrees, you may approach the Rental Dispute Centre (RDC) of Dubai and file a complaint. Based on your complaint, the RDC may summon your landlord and/or the real estate company to decide the rent of your apartment which is payable upon renewal of the tenancy contract.
This is in accordance with Article 13 of the Amended Dubai Tenancy law, which states:
“For the purposes of renewing a Lease Contract, the Landlord and Tenant may, prior to the expiry of the Tenancy Contract, amend any of its terms and reconsider increasing or reducing the Rent. If the Landlord and Tenant fail to reach an agreement in this regard, the Tribunal may determine the fair Rent, taking into account the criteria stipulated in Article 9 of this law."
News Source: Khaleej Times