Rent Increase Law in Dubai 

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Rent Increase Law in Dubai   is vital for both tenants and landlords.1 Here's a breakdown of the key elements:

Key Regulatory Authority:

  • The Real Estate Regulatory Agency (RERA), a part of the Dubai Land Department (DLD), is the governing body for rental regulations in Dubai.2

Core Principles:

  • RERA Rental Index:
    • This index is the cornerstone of rent increase regulations. It provides a benchmark for fair market rental values in different areas of Dubai.3
    • Landlords must adhere to this index when determining rent increases.4
  • 90-Day Notice:
    • Landlords must give tenants a minimum of 90 days' written notice before the lease renewal date if they plan to increase the rent.5 This allows tenants time to prepare.
  • Permissible Rent Increase:
    • The allowable rent increase is determined by how far the current rent is below the market rate, as indicated by the RERA Rental Index.6 Here's a general overview:
      • If the current rent is less than 10% below market rate: No increase.
      • If the current rent is 11%–20% below market rate: Maximum 5% increase.7
      • If the current rent is 21%–30% below market rate: Maximum 10% increase.8
      • If the current rent is 31%–40% below market rate: Maximum 15% increase.9
      • If the current rent is more than 40% below market rate: Maximum 20% increase.
  • Initial Tenancy Period:
    • Landlords cannot typically increase rent within the first two years of a tenancy agreement.

Important Points:

  • Dispute Resolution:
    • If a tenant believes a rent increase is unjustified, they can file a complaint with the Rental Dispute Settlement Centre10 (RDSC).11
  • Transparency:
    • The RERA Rental Index promotes transparency, enabling tenants to verify the legitimacy of rent increases.12

Where to Find Information:

  • The Dubai Land Department (DLD) and RERA websites are the official sources for accurate and current information.

By following these regulations, Dubai aims to maintain a balanced and fair rental market.

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