Many tenants, buyers, and first-time property investors assume that landlords can increase the rent whenever market prices rise. In reality, rent increases in Dubai are regulated by law and must meet specific legal requirements before they can be applied.
Whether you are renting a property, investing in Dubai real estate, or preparing to renew a tenancy contract, understanding these rules can help you avoid disputes and make informed decisions. This guide explains the rent increase laws in Dubai, how the RERA Rental Index Calculator works, the required notice period, and the rights of both landlords and tenants.
What Are the Rent Increase Laws in Dubai?
Rent increases in Dubai are regulated by legislation that protects both landlords and tenants. Rather than allowing unlimited increases, the law sets clear rules on when rent can be increased, how much it can increase, and the notice that must be given before a tenancy contract is renewed.
Rent Cannot Increase During the Current Tenancy
Once a tenancy contract has been signed, the agreed rent generally remains unchanged until the contract expires, unless both the landlord and tenant agree to amend the terms.
A Notice Period Applies
If a landlord intends to increase the rent or change the terms of the tenancy agreement, the tenant should generally receive at least 90 days' written notice before the contract expires, unless a different notice period has been agreed in the tenancy contract.
Rent Increases Must Follow the Rental Index
A landlord cannot increase the rent simply because market prices have risen. Any proposed increase must comply with the official Dubai rental index and remain within the permitted legal limits.
Rental Disputes Can Be Resolved Through the RDC
If the landlord and tenant cannot agree on the renewal terms, either party may refer the matter to the Rental Disputes Centre (RDC), which will consider the applicable laws and rental criteria before making a decision.
The maximum legal increase is determined by comparing the existing annual rent with the average rental value of comparable property shown by the official index.
Existing Rent Compared With the Index Average
Maximum Increase at Renewal
Up to 10% below the average rental value
No increase
11% to 20% below the average rental value
5%
21% to 30% below the average rental value
10%
31% to 40% below the average rental value
15%
More than 40% below the average rental value
20%
The percentage applies to the current annual rent, not to the index's average rental value. For example, if the existing rent is AED 80,000 and the relevant index average is AED 100,000, the rent is 20% below the average. The maximum increase would therefore be 5% of AED 80,000, producing a maximum renewed rent of AED 84,000.
What is the RERA Rental Calculator?
The "RERA calculator" is the common name for the Dubai Land Department Rental Index service. Its Smart Rental Index provides more property-specific rental assessments. It considers registered contract values within the building, average rents in the area, and building classification.
Classification covers factors such as condition, maintenance, finishes, location, facilities, services and parking management. This means two buildings in the same community may not receive the same rental assessment, as the area reputation alone is not enough to determine the legal increase for a particular apartment.
How to Use the RERA Rent Increase Calculator
The Rental Index is available through the DLD website, Ejari, Dubai REST and DubaiNow. The steps vary by channel, but the calculation requires property and tenancy details.
Select the rental index service
Enter the tenancy contract expiry date
Choose the property type and location
Enter the number of bedrooms and current annual rent
Confirm any property or Ejari details and review the permitted increase
Smart Rental Index vs Advertised Rental Prices
Online listings show asking prices for vacant properties; they do not establish the permitted increase for an occupied home or prove the rent agreed in completed contracts. The Smart Rental Index uses official rental information and property-classification criteria. Listings may inform negotiation, but they cannot replace the legal calculation.
How Does the 90-Day Rent Increase Notice Work?
If a landlord intends to increase the rent or change the terms of a tenancy agreement, they must generally provide the tenant with at least 90 days' written notice before the tenancy contract expires, unless both parties have agreed to a different notice period in the lease.
Written Notice Is Required
The notice should clearly outline the proposed changes, including the new annual rent (if applicable) and the contract renewal date. It should also be sent through the communication method agreed in the tenancy agreement or another legally recognised channel.
The Notice Period Is Based on the Contract Expiry Date
The 90-day notice period is calculated from the tenancy contract's expiry date, not from the date a rent cheque is due or any other payment schedule. Both landlords and tenants should refer to the tenancy agreement to confirm the correct renewal date.
The RERA Rental Index Still Applies
Providing the required notice does not automatically allow a rent increase. Any proposed increase must also comply with the limits set by the official RERA Rental Index Calculator.
What Happens if the Notice Is Late?
If the required notice is not given and the parties do not reach a different agreement, the proposed rent increase may not be enforceable at renewal. Landlords and tenants can still negotiate new terms, but any changes should comply with the applicable legal requirements.
What Rights Do Tenants Have When Rent Is Increased?
Key tenant protections include:
Index-based limits:
A proposed increase should not exceed the percentage permitted for the property.
Advance notice:
The landlord must follow the agreed provision or, where no different period applies, the 90-day requirement.
No mid-contract increase:
Rent cannot be changed unilaterally while the existing fixed lease remains in force.
Undisturbed use:
A landlord may not disconnect services or interfere with the tenant's use of the property to force acceptance of new terms.
Dispute resolution:
A tenant may seek conciliation or a decision through the Rental Disputes Centre.
What Should a Tenant Do About an Unlawful Increase?
Check the contract expiry date, notice clause and official index result, then respond before the renewal deadline.
Obtain the proposed annual rent in writing
Run the Rental Index using the correct unit and contract information
Compare the notice date and percentage with the lease and calculator result
Reply in writing, attach the result and state the amount you consider lawful
Continue complying with the contract; do not withhold rent as a negotiating tactic
Retain the Ejari, lease, notices, correspondence and proof of attempted payment
If a landlord refuses rent or renewal on the existing lawful terms, the tenant may consider the Rental Disputes Centre's Offer and Deposit service
What Should Landlords Check Before Proposing an Increase?
Before proposing a rent increase, landlords should ensure they comply with the applicable legal requirements. Key considerations include:
Reviewing the tenancy agreement
Checking the RERA Rental Index Calculator
Calculating the permitted rent increase
Providing the required notice within the applicable timeframe
Retaining proof of communication
Allowing sufficient time for the renewal and Ejari process
Ensuring the proposed increase complies with the applicable legal requirements
Understanding Rent Increases Before Renewal
Understanding Dubai's rent increase regulations helps both landlords and tenants approach lease renewals with greater confidence. By following the required notice period and referring to the RERA Rental Index Calculator, both parties can better understand their rights and responsibilities before negotiating new rental terms.
If you're planning to invest in Dubai real estate, explore Binghatti's latest properties for sale or contact our property team on +971 800 15 to learn more about current residential and investment opportunities.
Can a landlord increase rent without 90 days’ notice?
At least 90 days’ notice is required before expiry unless the parties agreed to a different period. If notice is late, an index result allowing an increase does not by itself make it enforceable for the coming renewal.
What if the RERA calculator shows no rent increase?
If the result is 0%, advertised rents or a broker’s estimate do not authorise an increase. The parties may negotiate, but a disputed amount should be handled through the Rental Disputes Centre rather than through withheld services or unilateral action.
Can a landlord increase rent during the tenancy year?
Not unilaterally. The fixed contract rent remains payable for its term. The statutory bands apply at renewal, subject to notice. Any mid-term change should be agreed by both parties and documented.
Where can a tenant dispute an excessive rent increase?
The tenant should send the landlord the current index result and seek a written resolution. If no agreement is reached, the Rental Disputes Centre handles conciliation and rental claims. Its Offer and Deposit procedure may also be relevant where lawful payment or renewal is refused.
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