Rent Increase Law in Dubai in Dubai is crucial for both landlords and tenants to ensure fairness and transparency in the rental market.¹ Here's a breakdown of the key aspects:

Key Regulatory Body:

• The Real Estate Regulatory Agency (RERA), a division of the Dubai Land Department (DLD), is the governing body that regulates the rental market in Dubai.²

Core Principles:

• RERA Rental Index:
  • This is the primary tool used to determine permissible rent increases.³ It provides a benchmark for market rental values in different areas of Dubai.⁴
  • Landlords must adhere to this index when adjusting rental prices.⁵
• 90-Day Notice:
  • Landlords are required to provide tenants with a minimum of 90 days' written notice before the lease renewal date if they intend to increase the rent.⁶
• Permissible Rent Increase:
  • The allowable rent increase is determined by the difference between the current rent and the market rate, as indicated by the RERA Rental Index.⁷
  • Here's a general guideline:
    • If the current rent is less than 10% below the market rate: No increase.⁸
    • If the current rent is 11%–20% below the market rate: Maximum 5% increase.⁹
    • If the current rent is 21%–30% below the market rate: Maximum 10% increase.¹⁰
    • If the current rent is 31%–40% below the market rate: Maximum 15% increase.¹¹
    • If the current rent is more than 40% below the market rate: Maximum 20% increase.¹²
• Initial Tenancy:
  • Generally, landlords cannot increase rent during the first two years of a tenancy agreement.

Important Considerations:

• Dispute Resolution:
  • Tenants who believe a rent increase is unjustified can file a complaint with the Rental Dispute Settlement Centre (RDSC).¹³
• Transparency:
  • The RERA Rental Index promotes transparency, allowing tenants to verify the validity of rent increases.¹⁴

Where to Find Information:

• The Dubai Land Department (DLD) and RERA ***sites are the official sources for accurate and up-to-date information.¹⁵

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