Rent Increase in Dubai: What Tenants and Landlords Need to Know

Reasons Why Landlords May Increase Rent

The first step to understanding the concept of rent increase in Dubai is to understand the reasons it occurs. Here are some common reasons for landlords increasing a property’s rent in Dubai: 

• Market Alignment: Average rental prices in Dubai have increased significantly in recent years. Landlords may increase the rent to match current market rates for similar properties.

• Location Demand: A high market demand for rental properties is often one of the primary reasons for rent increases in Dubai. Properties near transport, schools, or business hubs tend to command higher rents.

• Upgrades & Renovations: Improvements to the unit or building amenities (e.g., gyms, lobbies) may justify a rental increase.

• Inflation: Rising maintenance or operational costs can lead landlords to increase rental prices accordingly.

• Regulatory Changes: Updates to tax policy or housing legislation may indirectly influence rent levels.

Legal Framework Governing Rent Increases

Dubai rent increase laws are monitored by the Dubai Land Department’s (DLD) regulatory arm, RERA (Real Estate Regulatory Authority). RERA plays an important role in regulating the entirety of Dubai’s real estate market and ensuring that there is fairness, transparency, and stability within the market. 

One of RERA’s many roles involves overseeing rental laws in Dubai - particularly rent increases. In a dynamic city like Dubai where the market can fluctuate at any given time, RERA has the critical responsibility of ensuring that even if there are rent increases in Dubai - it does not have a drastic impact on various stakeholders (e.g. landlords and tenants). 

The core rental legislation, Decree No. 43 of 2013, continues to govern rent increases. This law defines how much rent can legally increase, depending on how far your current rent is from the average market rent of similar properties.

Here is a breakdown of allowable rent increases according to the law:

Smart Rental Index 2025

Launched in January 2025, Dubai’s Smart Rental Index replaces the previous annual RERA rental calculator. Powered by live market data and Ejari contract inputs, this AI-based tool now determines the average market rent in real-time.

Available via the Dubai REST App and the DLD website, this tool:

• Tracks rents based on property type, size, and location

• Factors in building quality and nearby infrastructure

• Sets maximum allowable rental increases per law

Both tenants and landlords can use the Smart Index to assess whether a proposed rent increase is legal. If a landlord tries to exceed the index limit, the tenant can challenge it through the proper channels.

Notification Requirements

Landlords must adhere to strict procedures when implementing rent increases:

• A 90-day written notice is required before the lease renewal date

• If no notice is served within this timeframe, no rent increase is permitted

• The notice must specify the proposed rent amount and comply with the Smart Index cap

Valid notice formats include email, registered mail, or notice through the Ejari system.

Rights of Tenants

As a tenant in Dubai, you are protected under rental law.

Key rights include:

• Written lease agreement: Must detail terms, rent amount, payment schedule, and other essential clauses

• Quiet enjoyment: Landlords may not enter the unit without permission unless there’s an emergency

• Maintenance obligations: Landlords are responsible for major repairs and structural integrity

• Receipts for rent payments: These provide proof of transactions

• Eviction protection: Landlords must follow a legal process to terminate tenancy or evict tenants

Responsibilities of Landlords

Along with legal rent increases in Dubai, landlords must:

• Maintain a habitable property throughout the lease

• Promptly address wear and tear or serious defects

• Return security deposits post-inspection

• Provide accurate check-in and check-out reports

• Ensure the unit meets safety and building code requirements

Negotiating Rent Increases in Dubai

If faced with a proposed rent increase:

1. Use the Smart Rental Index to check if the hike is lawful

2. Communicate with your landlord often a transparent conversation can lead to a compromise

3. If unresolved, file a complaint with the Rental Dispute Settlement Centre via the Dubai Land Department

Engaging with a RERA-certified real estate advisor, like Engel & Völkers, ensures your interests are protected and gives you better leverage in negotiations.

Conclusion

Dubai’s rental market remains robust and dynamic in 2025, shaped by a surge in demand and evolving regulations. The introduction of the Smart Rental Index ensures transparency and market alignment, protecting both tenants and landlords when it comes to rent increases in Dubai.

Whether you’re looking to understand Dubai’s rent increase laws or ready to rent your dream home, Engel & Völkers is here to guide you every step of the way. With over 45 years of global real estate expertise, we’re your trusted partner in navigating the Dubai property market whether renting, buying, or investing.

Get expert guidance with Engel & Völkers Dubai - real estate done right.