Legal Provisions for UAE Rent Increases Explained: How Often Can Sharjah Landlords Raise Lease Rates Under the Law?

Tenants in Sharjah are protected by clear legal provisions governing when and how landlords may increase rent. Recent amendments to the emirate’s real estate leasing law have reinforced these protections, particularly for long-term residents facing repeated rent hikes.

Under Law No. 5 of 2024 regarding Real Estate Leasing in the Emirate of Sharjah, landlords are generally prohibited from increasing rent during the first three years of a tenancy, unless both parties mutually agree otherwise. This rule applies regardless of how long a tenant has occupied the property and is intended to ensure stability in rental relationships.

Three-year Freeze on Rent Increases

Article 16 of the law states that a landlord may not increase the agreed rent value before the expiry of three years from the start of the rental relationship, unless the tenant expressly consents to a change. This means that, in the absence of written mutual agreement, any rent increase imposed during this initial three-year period is unlawful.

Importantly, the law goes a step further to protect tenants who may agree to an early increase.

What Happens if a Tenant Agrees to a Rent Hike?

If a tenant consents to a rent increase within the initial three-year period, the landlord is then barred from increasing the rent again for a further two years from the date of that increase. This provision prevents landlords from applying consecutive annual rent hikes even where a tenant has previously agreed to an adjustment.

Rent increases After Permitted Periods

Once the legally specified periods have passed, any rent increase must still comply with the concept of “fair rent.” The law provides that increases after the three-year or two-year restriction periods must reflect fair market value, with the executive regulations outlining how fair rent is to be calculated and what controls apply.

Additionally, the Executive Council of the Emirate of Sharjah retains the authority to amend these timeframes by issuing a formal decision, allowing flexibility in response to market conditions.

What Can Tenants Do if Rent is Increased Unlawfully?

Where a landlord imposes rent increases in violation of the law -- such as raising rent annually without observing the required freeze periods -- tenants are entitled to challenge the increase. The first step is to formally raise the issue with the landlord and request compliance with the law.

If the matter cannot be resolved amicably, tenants may file a complaint with the Sharjah Rental Dispute Centre, which has jurisdiction to hear rental disputes and issue binding decisions in accordance with local legislation.

Key Takeaway

Sharjah’s updated rent law provides strong safeguards against frequent or arbitrary rent hikes. Unless both parties agree otherwise, landlords must observe a three-year freeze on increases, followed by additional restrictions even where a tenant consents. Tenants facing repeated increases have legal recourse and should not assume such hikes are automatically valid under UAE law.

 

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