Real Estate

Renewing a tenancy in Dubai can raise questions about rent increases, agent commissions and registration costs. However, tenants do not have to accept every charge demanded by a landlord or property manager. The rules governing rental increases and tenancy renewals set clear limits on what can be imposed, while official registration fees remain separate from charges linked to renewing a lease.

Here is what tenants need to know about rent increases, renewal fees and other costs when extending a Dubai tenancy contract.

How Much Can Your Landlord Increase the Rent?

Rent increases at renewal are governed by Dubai Decree No. 43 of 2013 and the applicable rental index. Depending on how far the existing rent falls below the average rental value for comparable properties, the permitted increase ranges from zero to a maximum of 20 per cent. The amount a landlord can charge therefore depends on the difference between the current rent and the applicable benchmark, rather than simply on the landlord’s assessment of prevailing market prices.

A landlord must also give the tenant at least 90 days’ written notice of any proposed change to the rent or other terms of the tenancy contract before it expires, unless the parties have agreed otherwise. The Rental Disputes Center (RDC), the judicial body responsible for resolving rental disputes in Dubai, has confirmed the notice requirement for parties seeking to amend tenancy terms. Tenants should therefore check both the proposed increase and whether the required notice has been served.

Can a Landlord Charge a Rent Renewal Fee?

No. In 2020, the RDC clarified that landlords and their representatives, including real estate management companies and leasing offices, cannot charge tenants a fee simply for renewing a tenancy contract. The position is intended to prevent landlords or property managers from adding charges that are not permitted under the applicable rental rules.

The RDC has also stated that landlords and their representatives cannot insert a special clause into a tenancy contract requiring payment of a renewal fee. A charge described as an administrative, lease-renewal or processing fee does not become permissible merely because it is given a different name. Tenants who encounter such demands should ask the landlord or property manager to identify the legal basis for the charge before making payment.

Can a Real Estate Agent Charge a Renewal Fee?

Tenants should examine their tenancy contract and any separate agreement with a real estate agent before agreeing to pay additional charges. The distinction is between a fee imposed simply because a lease is being renewed and payment for a separate service that the tenant has expressly agreed to purchase.

Where an agent has been specifically engaged to negotiate renewal terms or prepare documents, any service charge will depend on the nature of the work, the agreement with the party responsible for payment and the applicable rules. A landlord or property manager cannot, however, automatically impose an arbitrary renewal charge on a tenant as a condition of extending the tenancy. Tenants should establish who commissioned the service and who agreed to pay for it.

Commission and other setup costs should also be distinguished from rent and renewal fees. Before paying an additional amount, tenants should check the terms agreed when the original tenancy was signed and establish whether the charge was clearly disclosed in a separate agreement. A demand made at renewal should not be treated as automatically payable simply because it comes from an agent or property management company.

What About Ejari Renewal Fees?

Ejari registration is a separate matter from any fee charged by a landlord or agent for renewing a lease. The Dubai Land Department (DLD) publishes official charges for registering tenancy contracts, with the amount depending on the registration channel used.

The DLD lists the cost of registering a tenancy contract through the Dubai REST app or its website at Dh177.75, including applicable service partner, knowledge and innovation fees. Registration through a Real Estate Services Trustee Centre carries a listed total of Dh220. Tenants should check the current official fee schedule before paying, as charges and procedures may change.

These amounts relate to official registration services and should not be confused with a landlord’s lease-renewal fee. Before completing a renewal, tenants should review their contract, check any proposed rent increase against the applicable RERA rental index and request an itemised breakdown of additional charges. Where a fee appears inconsistent with the rules, seeking clarification from the landlord or the relevant Dubai Land Department authority can help prevent an unnecessary payment.

Egypt is preparing to overhaul regulation of its real estate development market under a draft law that would establish the Egyptian Federation of Real Estate Developers and introduce new rules governing developer classification, unit sales, buyer protection and stalled projects.

Under the proposed legislation, developers would be required to open a separate bank account for each project or development phase. All payments collected from buyers under sales contracts would have to be deposited into the designated account and could only be used for the relevant project or phase.

Withdrawals from each project account would be linked to the construction schedule and the actual rate of completion. These would be determined on the basis of a report prepared by the project’s appointed consultant and approved by the Egyptian Federation of Real Estate Developers.

According to a preliminary copy of the draft law reviewed by Daily News Egypt, the Ministry of Housing is consulting developers on the proposed provisions before the legislation is submitted to the Cabinet.

Prior Approval Required Before Marketing Projects

The draft would require developers to obtain prior approval from the federation before advertising units for sale, marketing projects or participating in real estate exhibitions.

Developers would also have to deposit amounts specified under the relevant regulations into each project’s designated account, taking into account the size of the project and its development costs.

The measures are intended to strengthen oversight of customer funds and ensure that money collected from buyers is directed towards the projects for which it was paid.

Two Funds Proposed To Protect Buyers

The draft law proposes the establishment of two independent funds to protect customers who contract with real estate developers.

One fund would cover customers dealing with registered real estate developers, while the other would protect customers dealing with companies classified as “deemed real estate developers”.

The Prime Minister would determine the management structure of each fund, contribution rates, the risks covered and the rules governing compensation payments.

The proposed funds are part of a wider framework aimed at reducing risks for property buyers and providing mechanisms to deal with stalled projects and failures to meet contractual obligations.

Mandatory Classification Based On Project Size

Companies operating in the sector would be divided into two categories — “real estate developers” and “deemed real estate developers” — based on the nature and size of their projects.

The first category would include companies developing residential projects and related activities on land of at least five feddans, as well as commercial, administrative, service and tourism projects covering at least one feddan.

Companies developing projects below these thresholds would fall into the “deemed real estate developer” category, provided they have previously completed projects covering at least three feddans and meet requirements relating to experience, financial solvency and their record of violations.

Existing developers would be required to regularise their status within one year of the effective date of the law’s executive regulations.

Federation Registration To Become A Condition For Project Approvals

Registration with the federation would become a prerequisite for developers seeking approval for their projects.

Companies applying for registration would have to include real estate development among their corporate purposes, provide evidence of land ownership or allocation, demonstrate financial solvency and establish that they have not been subject to a final bankruptcy ruling.

Administrative authorities would also be prohibited from approving land subdivisions or issuing project-related licences until they had verified that the company was registered with the federation and had obtained the appropriate classification.

The federation would maintain two electronic registers — one for real estate developers and another for companies classified as “deemed real estate developers”.

Registration and classification information would be publicly available free of charge and updated monthly, allowing prospective buyers to verify a developer’s status before entering into a contract.

Federation To Monitor Market And Settle Disputes

The proposed federation would have wide-ranging responsibilities, including classifying companies, establishing a professional code of conduct, settling disputes, monitoring real estate prices and preparing periodic reports on market activity.

The government is seeking to create a more structured regulatory framework for the real estate development industry as the sector has expanded and concerns have increased over developers’ ability to complete projects and deliver units on schedule.

The proposed framework would also give the federation a central role in monitoring market practices, strengthening professional standards and improving transparency between developers and buyers.

New Mechanisms Proposed For Stalled Projects

The draft law sets out procedures for dealing with developers that fail to implement their projects.

Initially, the developer would receive a formal notification and be given an opportunity to resume construction. If the developer failed to respond or take corrective action, the federation could arrange for another company to complete the project at the original developer’s expense or resort to one of the proposed protection funds.

If the federation did not intervene, the competent administrative authority could assign the project to one or more developers registered with the federation, in accordance with rules to be set out in the executive regulations.

The proposed provisions come as the government has begun identifying stalled real estate projects and assessing their status amid complaints from some buyers over delays in the delivery of units.

CBE Monitors Real Estate Sector Financing

The preparation of the draft law also coincides with regulatory efforts by the Central Bank of Egypt (CBE) to monitor bank financing extended to the real estate sector, including the relationship between financing and actual project implementation rates.

The proposed framework would subject developers’ financial capacity, use of customer funds and progress in project execution to greater scrutiny, while establishing mechanisms intended to protect buyers if projects encounter financial or operational difficulties.

Design defects are among the most challenging issues to resolve in construction disputes as responsibility for a defective element can arise at different stages. A problem can begin with the design, emerge from the manner of execution or result from inadequate supervision. Establishing liability therefore goes beyond identifying the party physically performing the defective work.

The UAE construction liability regime understands these distinctions, though it imposes specific statutory obligations in relation to serious structural defects. Federal Decree by Law No. (25) of 2025 Promulgating the Civil Transactions Law came into force on June 1, 2026, replacing Federal Law No. (5) of 1985 concerning the Civil Transactions Law of the United Arab Emirates. The construction (muqawala) provisions are mainly contained in Articles 812 to 839, while the decennial liability regime is addressed in Articles 821 to 824.

Which Law Applies?

The starting point is determining which law governs the dispute. The new Civil Transactions Law generally operates prospectively while contracts concluded before June 1, 2026 remain subject to the previous law, subject to applicable transitional provisions, including those relating to limitation periods. Where a construction contract was entered into before that date, the relevant provisions of the former law should therefore be considered. Under that legislation, the construction provisions were contained in Articles 872 to 896, with decennial liability addressed in Articles 880 to 883.

Many of the muqawala provisions are default rules and can be modified by agreement between the parties, subject to mandatory statutory protections, including those governing decennial liability. It is therefore not enough to consider the legislation in isolation. The construction contract, its schedules and technical documents must be read alongside the applicable statutory provisions to establish how responsibility was allocated.

Design Responsibility And Workmanship

The first substantive issue is whether the alleged defect lies in the design itself or in the contractor's execution of that design.

Article 822(1) of the new Civil Transactions Law provides that an engineer whose role is confined to preparing the design is responsible for defects attributable to the design, but not for defects from the method of execution. Where the contractor has responsibility for carrying out the works and departs from approved drawings, specifications or the agreed methodology, responsibility may instead lie with the contractor.

The distinction can become particularly important when a contractor argues that it simply followed instructions issued by the employer or consultant. Approval of a drawing does not necessarily absolve a contractor from responsibility for poor workmanship or an improper method of execution. At the same time, a contractor should not automatically become responsible for a fundamental design error simply because it constructed the faulty element.

The contractual allocation of duties is therefore critical. The scope of services, specifications, drawings, method statements, approvals, site instructions and project correspondence should be considered together. These documents can help identify what each party was expected to identify, review, approve or execute.

Design-And-Build Contracts

The analysis becomes more complicated under a design-and-build arrangement. Unlike a traditional build-only contract, the contractor may take responsibility for both designing and executing the works. Its obligations may consequently extend beyond workmanship to the adequacy, integration and coordination of the design.

A contractor cannot necessarily avoid responsibility by arguing that a defect originated with a designer if it had accepted overall design responsibility under the contract. Conversely, an employer seeking compensation must establish the relevant contractual obligation and demonstrate a connection between the alleged design deficiency and the loss suffered.

Design responsibility, review obligations, reliance on information supplied by the employer and procedures for raising discrepancies should therefore be addressed clearly in the contract. Equally important is the project record: concerns about drawings, specifications or design coordination should be raised promptly and documented rather than left to be reconstructed after a dispute has arisen.

Employer-Provided Specifications

Another complication arises where the employer provides specifications, drawings or design criteria. A contractor may argue that it was contractually obligated to build in accordance with that information and should not be held responsible for an inherent defect in the employer's design.

Article 816(3) requires the contractor, where the contract does not provide otherwise, to notify the employer immediately if defects appear in materials supplied by the employer or if other circumstances prevent proper execution. A failure to give notice may expose the contractor to liability for the consequences.

The provision does not explicitly refer to designs supplied by the employer, and its application to design inconsistencies has yet to receive clear judicial treatment. It may nevertheless be argued that a serious design inconsistency or impractical detail consists of an “other factor” that prevents proper execution. For contractors, the safer approach is therefore to raise concerns in writing as soon as an apparent design problem affecting execution is identified, or ought reasonably to have been identified.

The Consultant's Role In Supervision

Supervision raises a separate question. Under Article 822(1), an engineer whose appointment is limited to design is responsible for defects attributable to that design. Article 822(2), however, provides that an engineer whose role is limited to supervising execution is jointly liable with the contractor for execution defects occurring under that engineer's supervision. The previous law addressed the position of a design-only engineer but did not explicitly deal with a supervision-only engineer in the same way.

The precise scope of the consultant's appointment is therefore important. Attendance at a site or periodic inspection does not necessarily mean that a consultant took on responsibility for every aspect of construction. However, where supervision forms part of the consultant's contractual duties, shortcomings in that supervision may lead to liability.

The distinction can be particularly important in major projects involving several layers of consultants, specialist contractors and subcontractors. The question is not simply whether a consultant visited the site, but what the consultant was contractually required to inspect, monitor, approve or report and whether the alleged defect falls within those responsibilities.

Where Several Parties Contributed To The Defect

Construction defects often have more than one cause. A design omission may be compounded by an inappropriate construction method, inadequate inspection, poor materials, insufficient testing or subsequent alterations. Expert evidence can therefore play a central role in determining technical causation.

A construction expert may review design documents, specifications, site records, inspection reports, testing results, correspondence, photographs and as-built information to determine how the defect developed and whether the conduct of more than one party contributed to the consequence.

This distinction matters because contractual responsibility and technical causation do not always point to the same party. Evidence must establish not only what failed, but how and why it failed, which party was responsible for the relevant stage of the works and whether another participant contributed to the resulting damage.

In a complex dispute, the chronology can be as important as the technical evidence. A contractor's discovery of a design inconsistency, a consultant's approval of a revised detail or an employer's instruction to proceed despite a warning may each affect the eventual assessment of responsibility.

The Statutory Decennial Regime

The statutory decennial liability regime operates alongside the contractual analysis described above. Article 821 makes the contractor and engineer jointly and severally liable to the employer for ten years for the total or partial collapse of buildings or fixed installations, as well as defects that threaten their structural integrity and safety. Under Article 821(1), the regime applies where the engineer prepared the design for execution by the contractor under the engineer's supervision. Where the engineer's role is limited to design without supervision, Article 822(1) confines the engineer's liability to defects attributable to the design.

The decennial regime does not depend on establishing fault. Liability may still arise where the defect resulted from a problem with the ground or the employer authorised the defective work. A contractor engaged on a build-only basis may therefore still face decennial liability even though it did not take on the design.

Article 823 provides that any agreement seeking to exclude or limit this liability is void. Article 824 further requires a claim to be brought within three years from the collapse or discovery of the defect.

Article 821(4) provides that the statutory decennial regime does not govern the contractor's recourse against subcontractors. Any such claim must instead be determined under the relevant contractual arrangements and applicable general legal principles.

Conclusion

Responsibility for a design defect in a UAE construction project cannot be determined simply by asking whether the contractor, consultant or designer was involved in the affected work. The answer depends on the law applicable to the contract, the contractual allocation of design, execution and supervision responsibilities, the nature and seriousness of the defect, the conduct of the parties during construction and the technical evidence establishing causation.

For developers, contractors and engineering consultants, clearly defined scopes of responsibility remain one of the best ways of reducing uncertainty. Prompt notice of design or execution concerns, careful documentation of instructions and approvals and comprehensive project records can also prove critical when a defect later develops into a dispute. In projects involving several professionals and contractual layers, the parties' responsibilities should be clear before construction begins rather than reconstructed after the failure occurs.

Dubai’s Court of Cassation has delivered a significant ruling on the financing of property developments, holding that a mortgage created by a developer may be invalid if the bank fails to deposit the corresponding financing into the project’s designated escrow account.

The ruling places the statutory escrow mechanism at the centre of the validity of development-related mortgages, rather than treating it simply as an administrative requirement governing the use of borrowed funds.

Under the UAE’s Real Estate Development Escrow Account Law, Federal Law No. 8 of 2007, financing for a development is required to be channelled into the escrow account established for that project. The latest court decision indicates that failure to comply with that requirement can directly affect the bank’s security over the property.

The distinction is important for lenders because a mortgage is ordinarily intended to provide security for repayment of a loan. But where the financing has not been deposited into the prescribed project account, the court has indicated that the mortgage cannot necessarily be enforced merely because a valid lending agreement exists between the bank and developer.

Escrow Requirement Becomes A Financing Safeguard

The decision reinforces the role of escrow accounts as a fundamental protection within Dubai’s off-plan property market.

Escrow accounts were introduced to separate project-related funds from a developer’s general finances and to ensure that money raised for a particular development is used for that project. The mechanism is particularly important in off-plan transactions, where buyers provide funds before construction is completed and may have limited control over how those funds are subsequently used.

The court’s approach gives the escrow requirement a further legal dimension. It suggests that compliance is not simply a matter between the developer and the relevant regulatory authorities. It can also determine the extent to which a financing bank can rely on a mortgage when seeking to enforce its security.

In practical terms, lenders therefore face a greater need to establish a clear link between the financing provided, the development for which it was intended and the relevant escrow account.

Mortgage Security Can Be Reduced

The implications are illustrated by a recent dispute in which a mortgage had initially been recorded at Dh246 million. The court reduced the amount secured by the mortgage to Dh93 million after it was established that only Dh93 million had actually been deposited into the project's escrow account.

The outcome demonstrates that the amount stated in a financing or mortgage arrangement may not, by itself, determine the extent of the bank’s enforceable security.

Where only part of the financing has been properly channelled through the project escrow account, the bank may find that its security is correspondingly limited. In circumstances where the required financing has not been deposited at all, the mortgage may face a more fundamental challenge.

The ruling therefore creates a direct connection between the movement of loan funds and the strength of the lender’s security.

Good Faith May Not Protect Lenders

One of the more significant aspects of the decision is that the bank’s intentions do not appear to override the statutory requirement.

A lender may have acted in good faith and may have expected the developer to apply the financing appropriately. That, however, does not necessarily cure a failure to comply with the escrow requirement.

This places greater emphasis on the bank’s own procedures before and during the release of development finance. Rather than relying solely on contractual undertakings from the developer, lenders may need to verify that the funds have actually entered the prescribed escrow account.

The principle could also encourage more rigorous monitoring of project finance, particularly where large sums are released in stages.

Wider Impact On Property Finance

For developers, the ruling highlights the importance of maintaining a clear separation between project financing and other corporate funds. A failure to ensure that financing is properly routed through the designated account could create consequences extending beyond regulatory compliance.

For banks, the decision raises questions about internal controls, disbursement procedures and documentation. Financing arrangements may need to be structured so that the destination of funds is demonstrable and consistent with the statutory framework.

The ruling may also influence how disputes involving developer defaults and mortgage enforcement are litigated. Evidence showing the amount actually deposited into an escrow account could become critical in determining the extent of a lender’s security.

Additional Protection For Off-Plan Buyers

The decision also strengthens the protective purpose behind Dubai’s escrow regime. For purchasers of off-plan properties, the principal concern is that money paid towards a development should contribute to the construction and completion of that project. A requirement that development financing itself be channelled through the project’s escrow account reinforces that objective.

The ruling can therefore be viewed as part of a broader judicial approach to safeguarding the integrity of Dubai’s real estate market. By insisting on compliance with the statutory framework, the courts are making clear that the protections built into the off-plan system cannot easily be bypassed through private financing arrangements.

For lenders and developers, the message is equally clear: the legal effectiveness of security over a development can depend not only on what the financing documents say, but also on where the money actually goes.

The decision is likely to encourage banks to strengthen due diligence and fund-disbursement controls, while developers will have greater reason to ensure that project financing follows the prescribed route from the outset.

As Dubai’s property market continues to attract substantial domestic and international investment, the ruling underlines the importance of escrow compliance as a matter of both investor protection and enforceable financial security.

A Dubai court has upheld the validity and enforceability of a contract for the sale of a residential villa worth Dh23 million after the buyer demonstrated that he had paid the full purchase price.

The Gulf national had filed a lawsuit seeking a court order to confirm the validity of the agreement and compel completion of the procedures required to transfer ownership of the Dubai property into his name.

The buyer told the court that he had transferred the entire purchase amount to the seller through three bank transactions but that the seller had failed to complete the title transfer.

During the proceedings, the seller argued that the buyer still owed Dh210,000 towards the brokerage commission and sought to delay the transfer of ownership until the amount was settled.

The buyer agreed to pay Dh100,000 towards the brokerage commission and withdrew an earlier claim for Dh5 million in compensation. He instead limited his demands to securing recognition of the sales contract and its enforcement.

The seller’s legal representative subsequently accepted the Dh100,000 brokerage payment into the client’s account, confirmed the validity of the sales contract and acknowledged that the full purchase price had been received. The representative also raised no objection to the transfer of title.

The Dubai Real Estate Court found that the sales contract had been duly signed by both parties and that there were no legal obstacles preventing completion of the ownership transfer.

The court also found that the buyer had fulfilled his financial obligations under the agreement. Bank transfer records supported his claim that the full purchase price had been paid, while the seller’s representative had expressly acknowledged receipt of the amount.

The court concluded that the issue raised by the seller over the outstanding brokerage payment no longer constituted a basis for delaying the transfer after the agreed Dh100,000 payment had been accepted.

It therefore confirmed that the sales contract was valid and enforceable and directed each party to bear their respective share of fees, expenses and legal costs.

The 14th edition of the Global Brand Awards will be held in Dubai on October 2, bringing together brands and business leaders from sectors including real estate, banking, education, hospitality, automotive, technology and lifestyle.

Organised by UK-based Global Brands Magazine (GBM), the awards ceremony will take place at Address Sky View, with the event scheduled to begin at 3.30pm Dubai time. The Law Reporters (TLR) is the media partner for the event.

The awards will be presented by Yaqoob Al Ali, Executive Director and Private Advisor at the Office of His Highness Sheikh Juma Bin Maktoum Al Maktoum. Dr Sunil Ambalavelil, Global Executive Chairman of Kaden Boriss, leading UAE-based legal consultancy and Hussain Yaslam Binsumida, Director – Investments at the Office of Al Shaikh Ahmed Bin Obaid Al Maktoum, will also join the event as guests of honour.

Brands Selected For Market Performance

According to GBM, this year's winners have been selected through research by its internal team and reviewed by independent evaluators. The assessment considered factors including market performance, innovation, customer experience and consistency in delivering on brand promises.

Jay Reddy, Chief Executive Officer of Global Brands Magazine, said the awards had developed into a platform for recognising brand leadership across international markets.

He said Dubai's role as a global business and innovation centre made it an appropriate location for the 2026 ceremony.

The awards have previously recognised brands including Emirates, Dubai Duty Free, HSBC, Standard Chartered, Microsoft, Malaysia Airlines and Harley-Davidson. Earlier ceremonies have been held at venues including Grand Hyatt Dubai, Waldorf Astoria Dubai, Address Downtown and The Athenee Hotel in Bangkok.

AI Takes Centre Stage

Artificial intelligence and its growing role in brand development will be among the key themes of this year's event, with two keynote speakers scheduled to address the subject from different business perspectives.

Mervyn D'Couto, Chief Marketing Officer at HeyBobo, an AI-powered personal wellness companion, will speak on the company's approach to using AI for personalised support and customer engagement.

Rachel Meuleman, founder of The Bizz Advisors and BizzAngels, will address the relationship between artificial intelligence and consumer trust in a presentation titled “AI Can Build Your Brand. Humans Make People Believe It.”

Meuleman has more than three decades of experience in sales and marketing, including 16 years in the Gulf region. She began her career in media before establishing The Bizz Advisors in Dubai in 2019.

Sponsors And Industry Participation

The 2026 awards are supported by HeyBobo as Platinum Sponsor, along with geospatial analytics platform Dyaan and Indian architecture and interior design company Zaga Urban.

HeyBobo develops AI-based personalised wellness services, while Dyaan uses satellite and geospatial data to provide information and analysis on locations and environmental change. Zaga Urban provides architecture, engineering, interior design and construction services for commercial, institutional, healthcare and residential projects.

Attendance at the ceremony is by invitation. GBM's previous award recipients are listed on its website.

Decennial liability continues to be a major long-term concern for contractors and engineers involved in construction projects in the United Arab Emirates. Federal Decree by Law No. (25) of 2025 promulgating the Civil Transactions Law (the “New Civil Transactions Law”) replaced Federal Law No. (5) of 1985 concerning the issuance of the Civil Transactions Law of the UAE, as amended (the “Former Civil Transactions Law”), with effect from June 1, 2026. The new legislation retains the basic principle of decennial liability, but sets out more clearly how that liability applies to engineers and how contractors may deal with claims involving subcontractors.

Under the Former Civil Transactions Law, decennial liability was principally governed by Articles 880 to 883. The equivalent provisions are now found in Articles 821 to 824 of the New Civil Transactions Law. The relevant provisions must, however, be considered alongside the transitional rules, particularly where construction contracts were entered into before June 1, 2026. The regime covers specified construction works and imposes a statutory 10-year guarantee for serious structural failures and defects affecting the stability or safety of a building or fixed installation.

Scope Of Decennial Liability

Article 821 provides that where a construction contract involves a building or fixed installation for which the engineer prepared the design and which was constructed by the contractor under the engineer’s supervision, the contractor and engineer are jointly liable for the total or partial collapse of the building or installation occurring within 10 years. The provision also covers defects that threaten the structural integrity or safety of the construction, even where no collapse has occurred. The guarantee period runs from the date on which the employer takes delivery of the works.

The significance of the provision is that an actual collapse is not required before decennial liability can arise. Serious defects capable of threatening the structural integrity or safety of a completed structure may fall within the statutory regime even if the building remains standing, provided the other requirements of the law are met. This can be particularly relevant in disputes involving foundations, structural systems and other defects that could compromise the safety or integrity of the completed works.

Article 821 also preserves liability where a collapse is caused by a defect in the land on which the structure was built or where the employer authorised construction of the defective structure. At the same time, the provision recognises an exception where the parties intended that the building or installation would remain in place for a period of less than 10 years. The position differs from the Former Civil Transactions Law, which expressly allowed the parties to agree to a period exceeding 10 years. That express provision has not been carried forward into the new law.

The Engineer’s Liability

The New Civil Transactions Law provides greater clarity on an engineer’s responsibility by linking liability to the work for which the engineer was appointed. Article 822 distinguishes between design and supervision functions. Where an engineer is engaged only to prepare the design of a building or installation, or part of it, the engineer is responsible for defects attributable to that design or construction prepared by the engineer, but not for defects arising from the method of execution.

Where the engineer’s appointment is instead limited to supervising execution, or part of it, the engineer is jointly and severally liable with the contractor for defects in execution occurring under that supervision. The distinction is important on projects where separate consultants are responsible for design and supervision, or where an engineer’s role changes during the course of construction.

For that reason, the scope of an engineer’s appointment should be recorded with precision. Contractual documents that clearly identify who is responsible for design, supervision and execution can become particularly important when the source of a structural defect is disputed.

The new law therefore gives a clearer statutory basis for determining an engineer’s exposure where the appointment is confined to supervision of construction rather than design.

Can Decennial Liability Be Excluded Or Limited?

Article 823 provides that any condition intended to exempt the contractor or engineer from the statutory guarantee, or to limit that guarantee, is void. Contractors and engineers should therefore examine carefully any contractual wording that seeks to exclude, cap or otherwise restrict decennial liability.

A general limitation-of-liability clause should not be assumed to provide protection against statutory decennial liability where the law prohibits such a limitation. Parties can still allocate commercial and contractual risks between themselves, but those arrangements must operate within the boundaries imposed by the mandatory provisions of the New Civil Transactions Law.

Article 821 nevertheless contains a specific provision concerning structures that the parties intended to remain for less than 10 years. That provision should be distinguished from a general contractual waiver or exclusion of decennial liability. It does not, by itself, amount to a general right for parties to contract out of the statutory regime.

Subcontractors And Recourse

The New Civil Transactions Law also addresses an issue of practical importance to contractors: recourse against subcontractors. Article 821(4) provides that the decennial liability provisions do not apply to the contractor’s right of recourse against a subcontractor. The statutory regime governing the contractor’s and engineer’s liability towards the employer therefore does not automatically determine the contractor’s claim against a subcontractor.

Where a contractor seeks to recover losses from a subcontractor, the contractor will need to establish the appropriate contractual, fault-based or other legal basis for the claim. The position makes the terms of subcontract agreements particularly important, especially where the subcontracted works could contribute to a structural defect.

Subcontracts should therefore address matters such as defective works, indemnities, warranties, insurance, document retention and responsibility for losses arising from subcontracted work. A subcontractor should not simply be assumed to carry the main contractor’s statutory decennial liability because its work contributed to a defect. The contractor’s contractual and other rights of recourse should instead be identified clearly in the subcontract documentation.

Limitation Period And Practical Considerations

Article 824 provides that a claim under the decennial liability provisions will not be heard after three years from the occurrence of the collapse or the discovery of the defect. The three-year period operates alongside the 10-year warranty period established under Article 821. A qualifying collapse or defect must therefore occur or be discovered within the statutory framework, while the resulting claim must be brought within the applicable three-year period.

The new law places renewed emphasis on managing construction risks long after a project has been completed. Contractors and engineers should review their appointments, construction contracts, subcontracts and insurance arrangements against the requirements of the new statutory regime. Particular attention should be given to the division between design and supervision responsibilities, procedures for dealing with structural defects, contractual rights against subcontractors and the scope and duration of insurance cover.

Decennial liability should therefore be viewed as a project risk that can continue well beyond practical completion and the ordinary defects liability period. For contractors, engineers and other construction stakeholders, a close understanding of Articles 821 to 824, together with carefully drafted contractual arrangements, will be important in managing potential long-term exposure.

A landlord in Dubai who wants to take back a rented villa or apartment for personal use cannot simply ask the tenant to leave when the tenancy contract expires. The right to repossess a property for personal occupation is subject to specific conditions under Dubai’s tenancy legislation, including a minimum 12-month notice period and prescribed methods of serving that notice.

The rules are particularly relevant to owners who have rented out a property for several years but later decide to move into it themselves or provide accommodation for a first-degree relative. The law permits such repossession, but it also places conditions on the landlord to ensure that the eviction is based on a genuine need to recover the property for residential use.

The applicable framework is Law No. 33 of 2008, which amended Law No. 26 of 2007 regulating the relationship between landlords and tenants in Dubai. Under Article 25(2)(c), a landlord may seek eviction upon expiry of the tenancy contract where the owner wishes to take possession of the property for personal use or for use by a first-degree relative, provided the owner can establish that there is no other suitable property available for that purpose.

When Personal Use Can Be a Ground For Eviction

Personal occupation is one of the specific grounds on which a landlord can seek possession of a rented property when the existing tenancy reaches its expiry. The provision applies not only where the owner intends to live in the property but also where the property is required for the use of a first-degree relative.

However, ownership alone does not automatically give the landlord an immediate right to remove the tenant. The owner must demonstrate that the property is genuinely required for the stated personal purpose and that there is no alternative property owned by the landlord that is suitable for that purpose.

This requirement distinguishes a personal-use eviction from a simple decision not to renew a tenancy. The landlord must rely on one of the legally recognised grounds and comply with the procedure prescribed by the law.

The same provision also covers other circumstances in which possession may be sought upon expiry of a tenancy. These include demolition and reconstruction, extensive restoration or maintenance that cannot reasonably be carried out while the tenant remains in occupation, and the landlord’s intention to sell the property.

Twelve Months’ Notice Is Mandatory

For an owner seeking possession for personal use, the notice period is at least 12 months. The notice must specify the reason for eviction and must be given 12 months before the date on which the landlord requires the property to be vacated.

The requirement applies even where the tenancy agreement itself is approaching its expiry. A landlord cannot ordinarily wait until the final months of the contract and then demand that the tenant leave immediately because the owner intends to move in.

The statutory notice must be served through a Notary Public or by registered mail. A casual request, verbal communication or informal message from a landlord or property agent does not replace the legally prescribed notice procedure. Recent guidance on Dubai tenancy rules has continued to emphasise that a formal 12-month notice is required for personal-use and sale-related evictions.

The notice therefore serves two purposes: it informs the tenant of the landlord’s intention and gives the tenant the period required by law to arrange alternative accommodation.

The Notice Must State The Reason

The landlord must identify the legal reason for seeking possession. In a personal-use case, the stated purpose is that the owner or a first-degree relative intends to occupy the property.

This is important because the restriction on re-letting that follows a personal-use eviction is linked directly to the reason for which possession was obtained. A landlord cannot use personal occupation as a pretext to remove a tenant and then immediately place the property back on the rental market.

The Rental Dispute Centre, which handles rental disputes in Dubai, may become involved if the tenant challenges the eviction or possession is not surrendered voluntarily. The legal framework contemplates the landlord obtaining possession on the personal-use ground under the relevant provisions of the amended rent law.

What Happens After The Tenant Leaves

The landlord’s obligations do not necessarily end once the tenant has vacated the property. Article 26 imposes a restriction on what the owner can subsequently do with a property repossessed for personal use.

Where possession is awarded to the landlord for personal use or the use of a first-degree relative under Article 25(2)(c), the property cannot be rented to a third party for at least two years from the date the landlord takes possession if it is residential property.

For non-residential property, the corresponding period is at least three years. The law also provides for the possibility of the Tribunal setting a shorter period in its discretion.

The restriction is intended to prevent the personal-use ground from being used simply as a means of removing an existing tenant so that the property can subsequently be offered to someone else.

If the landlord re-rents the residential property in breach of the applicable restriction, the former tenant may seek fair compensation through the relevant rental dispute process. The compensation provision gives the tenant a potential remedy where the stated basis for repossession is not followed after possession has been obtained.

Personal Use Must Be Genuine

For landlords, the practical effect of these provisions is that a decision to move into a rented property requires planning well in advance. The owner cannot treat the end of a tenancy contract as an automatic opportunity to demand vacant possession.

The owner must establish the qualifying personal-use ground, demonstrate that there is no other suitable property owned for that purpose and serve the tenant with the required 12-month notice through one of the legally recognised methods.

The tenant, meanwhile, remains entitled to occupy the property during the applicable notice period unless another legally valid basis exists for earlier eviction.

For an owner intending to make a rented villa a primary residence, the safest approach is therefore to begin the process at least 12 months before the intended date of possession and ensure that the notice clearly records the statutory reason for eviction and is served in the prescribed manner.

Once possession is obtained on the basis of personal use, the owner must also comply with the post-eviction restriction. A residential property repossessed on this ground generally cannot be re-let to another tenant for at least two years from the date possession is taken.

Dubai’s tenancy law therefore gives property owners a route to recover a rented home for themselves or their first-degree relatives, but that right comes with procedural and continuing obligations. The 12-month notice, the requirement concerning alternative suitable property and the restriction on subsequent re-letting are central safeguards within the legal framework governing such evictions.

Most tenants only discover how complicated the end of a tenancy can be when they are actually preparing to leave. Under Article 7 of Law No. 26 of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai, as amended by Law No. 33 of 2008, a valid tenancy contract remains binding on both the landlord and tenant for its agreed term. It cannot generally be terminated unilaterally during that period unless termination is permitted by the law.

Accordingly, moving out and returning the keys does not, by itself, necessarily bring the tenant’s contractual obligations to an end. Whether a tenant is leaving at the end of the agreed term or seeking to exit earlier, the applicable contractual terms and legal requirements must be considered carefully. Two issues commonly arise during a move-out: whether and when the security deposit must be returned, and ensuring that the tenancy and its Ejari registration are properly brought to an end.

When Both Sides Agree To Part Ways

Sometimes, the cleanest way to leave a tenancy early is simply for the landlord and tenant to agree. Article 7 of Law No. 26 of 2007 provides that a valid tenancy contract cannot be unilaterally terminated during its term by either party, except where termination is permitted under the law. Mutual consent is one of the recognised routes for ending the contractual relationship.

If both parties agree to an early exit, they can settle the termination date, rent payable up to that date, handover arrangements and the treatment of the security deposit. The agreement should be recorded in writing and signed by both parties. This is particularly important where the tenant is leaving before the contractual expiry date, as a clear written agreement can establish that the landlord has agreed to the termination and to release the tenant from the remaining contractual term, subject to the terms agreed between the parties.

When The Tenancy Contract Provides An Exit

The next place to look is the tenancy contract itself. Some contracts contain an early termination or break clause setting out when the tenant may leave, the notice required and any payment that may become due upon early termination. The precise wording of the clause can therefore have significant practical consequences for a tenant seeking to leave before the agreed expiry date.

There is no single statutory early-termination penalty that automatically applies to every Dubai tenancy. The tenant's position will depend on the contract, the circumstances and the applicable law. A tenant should therefore not assume that a commonly used “two months' rent” or another early termination charge is automatically imposed by Dubai tenancy legislation. If the contract contains a specific termination mechanism, the tenant should comply with its requirements and retain evidence showing that the required notice was properly given and received.

When The Landlord Fails To Meet Its Obligations

A tenant's position may be different where the reason for leaving is connected to a failure by the landlord to perform its obligations. Article 16 of Law No. 26 of 2007 provides that, unless otherwise agreed, the landlord is responsible during the tenancy for maintenance and for repairing defects or damage affecting the tenant's intended use of the property. Article 15 also requires the landlord to hand over the property in a condition that allows the tenant to make the intended use of it.

A serious and unresolved failure may therefore give rise to a dispute before the Rental Disputes Centre. The tenant should first document the problem, notify the landlord and retain evidence of the response or failure to act. Simply vacating the property without addressing the contractual and legal consequences can create a separate dispute over rent or other liabilities. The circumstances of each case will need to be assessed on their facts rather than assuming that a maintenance problem automatically permits the tenant to terminate the lease.

The position also needs to be considered in light of the new Civil Transactions Law, Federal Decree by Law No. 25 of 2025, which came into force on June 1, 2026. Article 738 provides that either contracting party may, for a “supervening excuse” relating to that party, request termination of the lease, subject to liability for damage arising from the termination within the limits recognised by custom.

This is not an automatic right to walk away from a tenancy whenever a tenant's circumstances change. Whether a particular circumstance amounts to a qualifying supervening excuse will depend on the facts, the evidence and the applicable legal principles. A tenant should therefore obtain appropriate legal advice before relying on this provision as the basis for early termination.

Protecting Your Security Deposit

For many tenants, the security deposit is the final financial issue to be resolved. Article 20 of Law No. 26 of 2007 allows a landlord to obtain a security deposit to ensure maintenance of the property upon expiry of the tenancy and requires the landlord to refund the deposit, or the remaining balance, to the tenant upon expiry of the lease.

The condition in which the property is returned is therefore important. Under Article 21, the tenant must surrender the property in the condition in which it was received, subject to ordinary wear and tear and damage arising from reasons beyond the tenant's control. Where the parties disagree about the condition of the property, the matter may be referred to the competent rental dispute forum.

Tenants should photograph or video the property at handover, retain records of rent and utility payments, and obtain a written handover or inspection record wherever possible. If deductions are proposed, the tenant should ask for details and supporting evidence rather than simply accepting that the entire deposit can be retained. Keeping a clear record from the beginning to the end of the tenancy can be particularly useful if the parties later disagree about damage, outstanding payments or the amount that should be refunded.

Do Not Forget The Ejari

Moving out and cancelling the Ejari registration are related but distinct steps. The tenancy may have been terminated between the parties, but the administrative record should also be brought up to date. Dubai Land Department guidance provides for cancellation of tenancy contracts through the Ejari system, Dubai REST and Real Estate Services Trustee Centres, subject to the circumstances of the contract and the required approvals.

The Dubai Land Department currently provides a specific service for cancelling a tenancy contract where the property has been vacated. Its guidance states that an expired contract can be cancelled through the relevant channels, while cancellation of an active contract may require the owner's involvement or supporting documentation. For tenants, cancellation of an active Ejari through the relevant service channels may require the landlord's approval.

A tenant should therefore keep evidence of the termination, handover and Ejari cancellation. This can become important if the landlord later disputes the date on which possession was returned or alleges that the tenancy remained active. It is also sensible to retain confirmation of the cancellation rather than assuming that physically leaving the property automatically updates the official tenancy record.

When A Dispute Reaches The Rental Disputes Centre

Not every move-out is straightforward. Disputes may arise over early termination, rent, maintenance, the condition of the property, deductions from the security deposit or the date on which the tenancy actually ended. The Rental Disputes Centre, established under Decree No. 26 of 2013, has jurisdiction over rental disputes between landlords and tenants concerning real property in Dubai, subject to the exclusions and jurisdictional limits set out in the Decree.

The Centre also has a conciliation function designed to facilitate amicable settlements before disputes proceed through the relevant judicial process. Under the Decree, the Mediation and Conciliation Directorate can review documents and evidence, hear the parties or their representatives and propose settlement in an effort to resolve a rental dispute amicably.

For a tenant, preparation should begin before a dispute reaches the Centre. The tenancy contract, Ejari, payment records, notices, correspondence, photographs and handover documents can all help establish what was agreed and what occurred when the tenant moved out. A properly organised record can also help distinguish between contractual obligations, disputed deductions and claims arising from the condition or use of the property.

Know Your Position Before You Move Out

Moving out of a rental property should not be treated as simply a matter of handing back the keys. The route available to a tenant will depend on the tenancy contract, the reason for leaving and the circumstances of the particular case. Whether the tenancy ends by expiry, mutual agreement, contractual termination or through a formal dispute process, understanding the legal position before taking action can help prevent unnecessary liability and disputes.

For tenants, the practical steps are equally important: give notice in the required manner, keep a clear record of communications and payments, document the condition of the property at handover, address the security deposit and ensure that the Ejari registration is properly dealt with. Taking these steps before leaving can make the difference between a straightforward move-out and a dispute that continues long after the keys have been returned.

Owners of two-storey villas in Dubai who wish to rent each floor to a different family must consider both the emirate’s tenancy regulations and the rules governing shared accommodation before entering into separate lease agreements.

The landlord-tenant relationship in Dubai is primarily regulated by Law No. (33) of 2008, which amended Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai. Under Article 4(1), the contractual relationship between a landlord and tenant must be governed by a written lease contract containing key details, including a clear description of the leased property, the purpose of the lease, the term, the rent and its payment method.

This means that where a villa owner intends to lease the ground floor to one family and the first floor to another, each tenancy arrangement should clearly identify the particular premises being leased and comply with the applicable registration requirements.

New Rules For Shared Accommodation

The position also needs to be considered in light of Dubai Law No. (4) of 2026 Concerning the Regulation of Occupancy and Management of Shared Accommodation in the Emirate of Dubai, which came into force on August 26, 2026.

The law establishes a regulatory framework for properties designated for shared accommodation and gives Dubai Municipality responsibility for regulating the activity. It applies to real estate units across Dubai, including properties located in private development areas and free zones, as well as owners authorised to designate their properties for shared housing.

The legislation defines shared accommodation as the joint residence of a group of individuals or families where space within a real estate unit is allocated to each of them for living purposes and facilities or services such as kitchens, dining rooms, bathrooms and outdoor areas are shared.

The law also establishes the concept of a real property unit designated for shared housing after meeting the conditions, controls and standards prescribed by the legislation and related decisions.

A digital platform, referred to as the digital window, is also provided for under the law. It is intended to receive, study and decide applications for permits and other requirements connected with the organisation and management of shared accommodation, as well as facilitate monitoring and inspections.

Separate Floors May Be Different

The distinction between separate tenancies and shared accommodation is important for villa owners. If a property owner leases the entire ground floor independently to Family A and the entire first floor independently to Family B, with each family occupying a self-contained residential area and neither family sharing facilities or services with the other, the arrangement may not necessarily fall within the statutory definition of shared accommodation under Article 2 of Dubai Law No. (4) of 2026.

In such circumstances, the arrangement may instead be treated as two separate residential tenancies, provided the physical configuration of the property and the proposed use comply with applicable Dubai regulations.

The position can be different where portions of the villa are allocated to different families or groups and they share facilities or common areas. Where residents share facilities such as kitchens, bathrooms, dining areas or other services within the property, the arrangement is more likely to fall within the definition of shared accommodation.

In that situation, the owner must comply with the requirements of Dubai Law No. (4) of 2026, including any applicable conditions and the requirement to obtain the relevant permit before designating the property for shared accommodation.

Dubai Municipality Has Regulatory Role

Dubai Municipality is the competent authority responsible for regulating shared accommodation under the new law. Article 5 gives the municipality broad powers to establish the framework governing the activity.

These powers include preparing policies and strategic plans, determining the conditions for allocating a property for shared housing, setting the maximum number of residents permitted in a unit and specifying the minimum space and shared facilities required.

The municipality is also responsible for determining the areas where shared accommodation may be permitted, taking into account factors such as urban planning, population density, infrastructure, sewage systems and the social character of residential neighbourhoods.

The authority is further empowered to create and manage the digital window through which applications and related requirements for shared accommodation can be handled.

Lease Contracts Must Be Clear

Even where a villa arrangement does not constitute shared accommodation, landlords must still comply with Dubai’s tenancy rules. Each lease should clearly identify the premises being rented, its intended purpose, duration and rent. Where different floors are leased to different families, the contracts should accurately describe the relevant floor or self-contained portion rather than creating uncertainty about the property covered by each tenancy.

The tenancy arrangements must also comply with the applicable requirements for registration with RERA through Ejari.

The fact that a villa has two floors does not, by itself, automatically mean that each floor can be rented separately. The owner must consider whether the property is legally configured and authorised for the proposed use and whether the arrangement creates shared accommodation within the meaning of the 2026 law.

Owners Should Check Before Leasing

Villa owners considering separate tenancies should therefore establish whether the proposed arrangement involves genuinely independent residential units or whether the occupants will share facilities and services.

Where there is uncertainty, the owner should approach Dubai Municipality for clarification before entering into the tenancy arrangements. This is particularly important where the proposed occupation could fall within the regulatory framework for shared accommodation.

If the arrangement is permitted, the owner should ensure that each tenancy agreement complies with Dubai’s tenancy legislation and that the relevant contracts are properly documented and registered.

The introduction of Dubai Law No. (4) of 2026 therefore adds an important regulatory consideration for villa owners. Renting different floors to different families is not necessarily prohibited, but the legality of the arrangement depends on how the property is configured, how it is occupied and whether the occupants share facilities or services.

Owners should establish the applicable requirements before renting individual floors rather than assuming that separate physical floors automatically qualify as separate, unrestricted residential tenancies.