Can a Landlord Increase Rent in Dubai After 1 Year?

Navigating Dubai's rental market can be complex, especially when your lease renewal approaches. A common question for tenants is: Can my landlord increase the rent after just one year?

The short answer is Yes, but only if they strictly adhere to the regulations set by the Real Estate Regulatory Agency (RERA) and the Dubai Tenancy Law. The key to understanding your rights and obligations lies with the official RERA Rental Index and a mandatory notice period.

The Law on Rent Increases in Dubai

In Dubai, the relationship between landlords and tenants is governed by the Dubai Tenancy Law (Law No. 26 of 2007, as amended by Law No. 33 of 2008), with the crucial rent increase limits set by Decree No. 43 of 2013.

A landlord can only increase the rent once per year, at the time of contract renewal, and only if two main conditions are met:

• Notice Period: The landlord must provide the tenant with a written notice of the rent increase (or any changes to the contract) at least 90 days before the current tenancy contract's expiry date. Failure to provide this notice means the contract automatically renews on the same terms and rent.
• RERA Rental Index Limits: The increase must not exceed the maximum percentage allowed by the official RERA Rental Index (accessible via the RERA calculator).

How to Check the Rent Increase in Dubai: The RERA Calculator

The RERA Rental Index is the official tool used to compare your current rent against the average market value for similar properties in your area. This comparison determines whether an increase is even permissible and, if so, the maximum percentage allowed.

Step-by-Step Guide to Using the RERA Calculator

The official RERA Calculator can be accessed on the Dubai Land Department (DLD) website or through the Dubai REST app. You will need to input key details about your property:

1. Access the Service: Visit the DLD website or Dubai REST app and look for the "Inquiry about the Rental Index" service.
2. Enter Property Details: Input the required information, which typically includes:
   
   1. Property Type (Residential, Commercial, etc.)
   2. Area/Community
   3. Property Sub-Type (Apartment, Villa, etc.)
   4. Number of Bedrooms
   5. Current Annual Rent
   6. Contract End Date
3. Calculate & Review: The calculator will provide the estimated market value for your property and the maximum allowable rent increase percentage based on the difference between your current rent and the market average.

This tool is your primary source of truth for confirming the legality of any proposed rental adjustment.

What is the Maximum Rent Increase in Dubai? (The RERA Tiers)

The maximum rent increase a landlord can impose is capped by a tiered structure defined in Decree No. 43 of 2013. The allowed percentage is based on how much your current rent is below the average market rent for your property type and location, as determined by the RERA Rental Index.

Key Takeaway on Maximum Increase

The absolute maximum rent increase a landlord can implement is 20%, and this only applies if the current rent is deemed to be over 40% below the average market rate for similar properties.

What to Do If Your Landlord Proposes an Unlawful Increase

If your landlord proposes an increase that is not permitted by the RERA calculator or fails to give you the 90-day written notice, the proposed increase is legally invalid.

1. Communicate: The first step is to communicate with your landlord, sharing the result from the RERA calculator as evidence to support the legally permissible rent amount.
2. Negotiate: You have the right to negotiate a rate that you are comfortable with, but the law ensures you are not obliged to pay more than the RERA-mandated increase.
3. File a Dispute: If an agreement cannot be reached, either party may file a dispute with the Rental Dispute Settlement Centre (RDSC), which is part of the Dubai Land Department (DLD).

Understanding these regulations empowers you, whether you are a tenant looking to protect your budget or a landlord aiming for fair, legal adjustments.