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If you want to make the maximum money from rentals in Dubai while also following the city’s standards, you need to know what the city’s policies are about rent hikes. The Dubai Land Department (DLD) is in responsibility of making sure that the rental market in Dubai follows rigorous rules. The Real Estate Regulatory Agency (RERA) is a branch of the DLD. These guidelines dictate when and how much rent can go up, and they also tell landlords how to make sure the price increases are lawful.
What Are the Rent Increase Rules in Dubai?
Under the rent increase rules in Dubai, rent adjustments are permissible only at the time of tenancy renewal and must comply with RERA’s official indexes and notice requirements. Arbitrary or mid-lease increases are not allowed and can be challenged legally.
Key Legal Points
- Rent increases are permitted only at lease renewal.
- Landlords must issue a written notice at least 90 days before the lease expiry to legally enforce an increase.
- The RERA Rental Index determines how much rent can be increased based on the difference between your current rent and the average market rent.
RERA Rent Increase Rules in Dubai 2025
In 2025, Dubai’s rent rise rules will still be based on the RERA Rental Index, but it will now be a Smart Rental Index. This is a more data-driven and frequent benchmarking system that shows how the markets are doing in all of Dubai’s communities right now.
2025 Rent Increase Cap Table
| Difference from Market Rent (using RERA Index) | Maximum Permissible Increase |
|---|---|
|
Less than 10% below market rate |
0% (No increase allowed) |
|
11%–20% below market rate |
Up to 5% |
|
21%–30% below market rate |
Up to 10% |
|
31%–40% below market rate |
Up to 15% |
|
More than 40% below market rate |
Up to 20% |
How to Calculate Legal Rent Increase
1. Look at the RERA Rental Index
You can use the official RERA rental index service on the Dubai Land Department website or the Dubai REST app. This tool will compare the amount you pay for rent now to the average rent for similar homes in your area.
2. Figure out where the rent is
Find the percentage difference between the rent you pay now and the average rent charged by the RERA. This comparison tells you which level of the rent rise cap table your property falls under.
3. Do what is allowed Increase:
Figure out the highest percentage increase that is allowed based on the right tier and apply it to your present rent.
4. Give the notice of 90 days
At least 90 days before the end of the lease, write up and send a formal notice of a rent rise. Notices sent after this date are not legally binding.
Legal and Compliance Checklist for Landlords
| Requirement | Mandatory | Consequence of Non-Compliance |
|---|---|---|
|
RERA index used for determining increase |
Yes |
Increase may be invalidated
|
|
90-day written notice |
Yes |
Tenant may reject increase |
|
Lease renewal application |
Yes |
Cannot change rent mid-lease |
|
Documentation and Ejari registration |
Yes |
Legal disputes may arise |
How to Maximize Legal Rent Growth
As an investor, your goal is to both protect assets and optimise returns. Here’s how the rent increase rules in Dubai work in your favour when applied strategically:
1. Keep up with changes in the market
Since the Smart Rental Index shows real-time data, you can predict allowable rent rises and plan renewals ahead of time by looking at market trends on a regular basis.
2. Keep the number of guests high
Balanced rent rises that are in line with RERA rules help keep good tenants for longer, which lowers the risk of vacancies and keeps the cash flow steady.
3. Use data to guide your negotiations
Prepare talks about renewals that are based on data from an index to support rent increases. This will build trust with tenants and cut down on disagreements.
4. Get a variety of property types.
When the market is under pressure, different neighborhoods and types of property act in different ways. Diversifying across segments can help you keep your rental income stable while still taking advantage of legal raises.
Probable Problems and Solutions
| Issue | Practical Solution |
|---|---|
|
Tenants refuse rent increase |
Provide index data and documented calculations |
|
Notice sent late |
Apply increase next renewal cycle |
|
Discrepancy in market data |
Use official RERA index and documented evidence |
|
Tenant disputes legality |
Refer case to Rental Dispute Settlement Centre for resolution |
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Frequently Asked Questions
Dubai’s rent rise rules for 2025 say that landlords can only change rent when the lease is renewed and only if they follow the RERA Smart Rental Index. The most that the rent can go up is 20%, but only if the rent is below the market rate by 20%.
No, Dubai’s rent rise rules say that rent can’t go up while a lease is still in effect. Any changes can only be made at renewal time and must follow RERA rules.
Yes. At least 90 days before the lease ends, a written warning must be given. If the owner doesn’t give enough notice, they can’t raise the rent for that renewal period, even if the index lets them.
The RERA Rental Index compares your current rent to the average rent for similar homes in the same area to figure out the highest increase. The allowed rise slab is based on the percentage gap.
Dubai’s rent rules say that the most that can be raised is 20%, but only if the current rent is more than 40% less than the RERA index’s average for the market.
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