Rent increase rules in Dubai

The legal framework

Two rules work together. Law No. 26 of 2007, as amended, says a landlord who wants to change tenancy terms, including the rent, must notify the tenant at least 90 days before the contract expires. Decree No. 43 of 2013 then limits how large any increase can be, by comparing your current rent with the RERA rental index average for similar properties.

The Decree 43 bands

The cap depends on how far your current rent sits below the index average. The table on this page sets out each band. In short, if your rent is already close to the market average, no increase is allowed. The further below the average you are, the larger the permitted increase, up to a ceiling of 20%.

Since January 2025 the Smart Rental Index has also taken building classification into account, so two similar flats in different-rated buildings may have different benchmarks. See Smart Rental Index building ratings.

How to check your own case

Use the official RERA rental index calculator on the DLD rental index page. Enter the area, property type, size and your current rent, and it returns the maximum allowed increase. Our rent increase calculator is a quick way to see which band you fall into, but the DLD result is the one that counts.

Save a screenshot or PDF of the result with the date. It is useful evidence if you need to negotiate or dispute.

What the 90-day notice must do

The notice should be in writing and clear about the proposed new rent or terms. Email or a message you can prove was received is common in practice. If no valid notice reaches you at least 90 days before expiry, the landlord is generally not able to impose a change at that renewal. This is explained further in our 90-day renewal notice guide.

If you disagree with the increase

Start by replying in writing with the calculator result. Many landlords accept the indexed figure once they see it. If not, you can negotiate, move, or take the matter to the Rental Dispute Centre. Keep paying rent as agreed while the issue is open.

A worked example in words

Imagine your rent is well below the index average for comparable flats in your building. Your landlord sends a notice more than 90 days before expiry proposing a new figure. You run the official calculator, which places you in, say, the 5% band. If the proposal is higher than that, you reply with the result and offer the capped amount. If the notice arrived late, you also point out that the change cannot apply at this renewal.

The same logic works for landlords: check the band before sending the notice, so the proposal is lawful from the start.

Rent can also go down

The index works both ways in negotiation. If market rents for your type of unit have fallen, a tenant can ask for a reduction at renewal. The landlord is not obliged to accept, but evidence of comparable rents and the index helps.