In Dubai, rent increases are regulated by strict laws to ensure fairness and transparency for both landlords and tenants. The Dubai Rental Law (Law No. 26 of 2007 and its amendments) governs these rules, with the Rental Increase Calculator by the Real Estate Regulatory Agency (RERA) playing a key role in determining legal rent hikes. Here’s everything you need to know about rent increases in Dubai and how they’re calculated.

1. RERA’s Rental Increase Calculator

   RERA’s Rental Increase Calculator is the primary tool used to determine if a landlord is eligible to increase rent. The calculator is based on current market rental rates in specific areas of Dubai and compares these with the rent you’re paying. The guidelines are updated regularly to reflect shifts in market conditions and ensure that rent increases are in line with market trends.

   You can access the RERA calculator online to determine whether your rent increase is legal based on the average rent for your area and property type.

   
   

2. Legal Limits for Rent Increases

   The legal limits for rent increases are strictly regulated depending on how much lower your current rent is compared to the average market rent. Here’s the breakdown:

   • No increase allowed if your current rent is up to 10% less than the average market rent for similar properties in your area.

   • A 5% increase is allowed if your rent is between 11-20% lower than the average market rent.

   • A 10% increase is allowed if your rent is between 21-30% lower than the average market rent.

   • A 15% increase is allowed if your rent is between 31-40% lower than the average market rent.

   • A 20% increase is allowed if your rent is more than 40% lower than the average market rent.

   These limits apply to all residential properties in Dubai and are enforced by RERA to prevent unreasonable or sudden rent increases.

   
   

3. Notice Period for Rent Increases

   According to Dubai’s Tenancy Law, landlords must provide tenants with at least 90 days’ notice if they intend to increase the rent at the time of contract renewal. This notification must be in writing, and both parties should agree to the new terms before signing the lease renewal.

   If the landlord fails to give this 90-day notice, they lose the right to increase the rent for that year, and the tenant can continue paying the same rent as before.

   
   

4. Key Factors Impacting Rent Increases

   • Location: Areas with high demand, such as Downtown Dubai, Dubai Marina, and Palm Jumeirah, often see market rents increasing more quickly than other neighborhoods.

   • Property condition and amenities: Older or less well-maintained properties may not see significant rent increases, while newly renovated or premium properties may attract higher rates.

   • Economic trends: Shifts in Dubai’s economy, population growth, and tourism can influence rental market trends. For example, in 2024, rental demand in popular areas has seen a surge, driving rent increases in line with RERA regulations.

   
   

5. Dispute Resolution

   If a tenant feels that the proposed rent increase is unreasonable or not in line with RERA’s guidelines, they can file a complaint with the Rental Dispute Settlement Centre (RDSC). The RDSC will review the case, comparing the rent increase to the legal limits set by RERA, and issue a ruling to resolve the dispute.

   Tenants should gather evidence, such as the RERA Rental Increase Calculator results, and any communication with the landlord to strengthen their case.