Dubai Rent Hikes Explained: When Landlords Can Legally Increase Rent and the Limits Imposed by Law

Rental increases in Dubai are not left to the discretion of landlords. They are governed by a structured legal framework that balances the rights of property owners with tenant protections. The primary legislation regulating rent hikes in the emirate includes Law No. 33 of 2008, which amended Law No. 26 of 2007 on landlord-tenant relations, and Decree No. 43 of 2013, which determines permissible rent increases for real property in Dubai.

Under the law, a landlord may increase the rent only upon the expiry of the tenancy contract and not during its term. This means that if a lease is valid for one year, the rent cannot be raised mid-contract. Furthermore, even in annual contracts, the landlord is not permitted to increase the rent more than once within the same year.

Any proposed increase must comply with the rental index and regulations issued by the Real Estate Regulatory Agency, operating under the Dubai Land Department. The increase must align with the approved rental range for the specific area and comparable properties. The law caps any increase at a maximum of 20 per cent, depending on how far the existing rent falls below the average market rate, as reflected in RERA’s rental index.

In determining whether an increase is justified, several factors are taken into account. These include the prevailing rental value of similar properties in the same area, the condition of the property, the overall economic situation in Dubai, and any other relevant considerations prescribed by applicable legislation.

Importantly, a landlord must provide written notice of the intended rent increase at least 90 days before the expiry of the tenancy contract, unless a different notice period has been contractually agreed. Failure to provide this notice within the stipulated timeframe may invalidate the proposed increase.

If the tenant and landlord are unable to agree on the revised rent, the matter may be referred to the Rental Disputes Settlement Centre, where the tribunal has the authority to determine a fair rental value in accordance with the law and the RERA index.

In summary, landlords in Dubai cannot increase rent arbitrarily or multiple times within a single lease period. Any increase must comply with statutory caps, align with the official rental index, and be communicated within the legally mandated notice period, ensuring transparency and predictability in the emirate’s rental market.

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