Rent Increase Law in Dubai

 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.