Dubai rent increase rules: how much can the rent go up?

This guide is for tenants who have a renewal coming up in Dubai, and for landlords who want to set a fair renewal rent. It answers one question: how much can the rent go up when the contract is renewed?

The answer comes from Decree No. 43 of 2013, the RERA rental index and the tenancy law. We quote the official texts and show the sums, so you can check your own rent.

How much can the rent go up in Dubai?

Article 1 of Decree No. 43 of 2013 sets the maximum increase when a lease is renewed. The cap depends on how far the current rent sits below the average market rent for similar homes. The further below the average, the larger the increase allowed.

The percentage is applied to the current rent, not to the average. These are the five bands:

Rent up to 10% below the average

No increase

Rent 11% to 20% below the average

Up to 5% of the current rent

Rent 21% to 30% below the average

Up to 10% of the current rent

Rent 31% to 40% below the average

Up to 15% of the current rent

Rent more than 40% below the average

Up to 20% of the current rent

Who does the rule apply to?

Article 2 of the decree applies it to all landlords in Dubai, public and private. That includes the special development areas and the free zones, and it names the Dubai International Financial Centre.

The caps apply on renewal. Article 1 talks about renewing leases, so it does not set the rent for a new contract with a new tenant.

Where does the average rent come from?

Article 3 of the decree says the average market rent is set by the Rent Index of the Emirate of Dubai, approved by the Real Estate Regulatory Agency (RERA). Neither side picks the average. It comes from the index.

The Dubai Land Department publishes the index through its rental index service. The service shows the average rent and calculates the allowed increase for the home you describe.

What changed with the Smart Rental Index in 2025?

On 2 January 2025, DLD launched the Smart Rental Index 2025. DLD says it relies on a building classification system and on artificial intelligence. Each building is assessed on its technical and structural features, the quality of finishes and maintenance, its location, and services such as cleaning, maintenance and parking management.

So the way the average is worked out changed: two homes in the same area can now have different averages because their buildings are rated differently. The percentage bands did not change. They still come from Decree No. 43 of 2013.

DLD said the first phase covers residential property across Dubai, including the special development zones and free zones. It plans to add commercial and industrial indexes later.

How to check your rent with the DLD calculator

1. Step 1: Open the rental index on the DLD website, the Dubai REST app or the DubaiNow app.
2. Step 2: Enter the contract end date and the property type.
3. Step 3: Find the home by its Ejari contract number, its DEWA premise number, or by area and building name.
4. Step 4: Enter the number of bedrooms and the current annual rent.
5. Step 5: Calculate. The result shows the average rent and the increase allowed.

DLD's page lists the service as open to all, with the result shown immediately and no fee mentioned when we checked in October 2026. Save a screenshot of the result with the date. It is the figure both sides can point to.

Worked example: a rent of AED 100,000

Say your current rent is AED 100,000 a year. The gap is how far your rent sits below the index average, as a share of that average. The increase is then a percentage of your AED 100,000.

Index average AED 105,000: gap 4.8%

No increase. Rent stays at AED 100,000

Index average AED 120,000: gap 16.7%

Up to 5%: at most AED 105,000

Index average AED 135,000: gap 25.9%

Up to 10%: at most AED 110,000

Index average AED 160,000: gap 37.5%

Up to 15%: at most AED 115,000

Index average AED 180,000: gap 44.4%

Up to 20%: at most AED 120,000

Take the second row. The gap is (120,000 minus 100,000) divided by 120,000, which is 16.7%. That falls in the 11% to 20% band, so the cap is 5% of AED 100,000, or AED 5,000.

Even in the last row, the new rent of AED 120,000 is still well below the average of AED 180,000. The decree limits how fast a rent can catch up with the market.

How much notice must a landlord give before raising the rent?

Article 14 of Law No. 26 of 2007, as amended by Law No. 33 of 2008, covers this. Unless the two sides agreed otherwise, a party that wants to change any term of the lease on renewal must notify the other at least 90 days before the contract expires. The rent is one of those terms.

The law defines notice as written. It can go through a notary public, by registered mail, by hand, or by another electronic means the law approves. Keep a copy and a record of the date it was sent.

What if the landlord wants the home back?

That is a different rule with a longer notice period. Under Article 25(2) of the amended law, a landlord can seek eviction when the lease ends only in four cases, and must give at least 12 months' notice through a notary public or by registered mail.

• The owner plans to demolish and rebuild, or add structures that stop the tenant using the home, and has the permits.
• The home needs restoration or major maintenance that cannot be done with the tenant inside, confirmed by a Dubai Municipality technical report.
• The owner wants the home for their own use or for a first-degree relative, and can prove they own no suitable alternative.
• The owner wants to sell the home.

What if you and the landlord cannot agree?

Article 13 of the amended law lets landlord and tenant change any term before the lease expires. If they cannot agree, the tribunal may set a fair rent. Decree No. 43 refers to this body as the Rent Disputes Settlement Centre.

Article 9 lists what the tribunal considers: RERA's rent increase criteria, the economic situation in Dubai, the condition of the property, rents for similar homes in the same area, any rent legislation, and other factors it sees fit.

Common mistakes

• Applying the percentage to the average rent. The decree applies it to the current rent of the home.
• Treating the cap as automatic. The bands set a maximum; the landlord can ask for less, or nothing.
• Missing the 90-day notice. A change to the rent on renewal needs written notice at least 90 days before expiry, unless both sides agreed otherwise.
• Using an old calculator result. Check the index close to the renewal date, since the average can change.
• Comparing with listings instead of the index. The decree uses the RERA index, not asking prices online.
• Confusing a rent change with an eviction. Taking the home back at expiry needs 12 months' notice and one of the four legal reasons.

For landlords: how to set a renewal rent

Start with the DLD calculator for the unit, using the current rent and the contract end date. The result gives the most the decree allows. You can ask for that amount or less.

If you want to change the rent or any other term, send written notice at least 90 days before the contract ends. Use a notary public, registered mail, hand delivery or an approved electronic means, and keep proof of the date.

Attach the dated calculator result to the notice. It shows the tenant how you reached the figure and keeps the conversation on the numbers.

Questions people ask

Before you sign the renewal

Run the DLD calculator for your home, keep the dated result, and check when any notice arrived. If the numbers and the dates line up, the renewal can go ahead on those terms.

Long Rainbow can run the check with you, for tenants and for landlords. We read the result against the decree and tell you what the rules allow.

Rules and fees change. Ask us on WhatsApp and we will check what applies to your case.