Do you know the rent Increase Limits in Dubai: Guide for Tenants and Landlords
In Dubai’s dynamic real estate market, both tenants and landlords often find themselves navigating rent renewals with uncertainty. Whether you’re leasing a villa in Jumeirah or a studio in Business Bay, understanding your legal rights around rent increases at contract renewal is essential.
Thankfully, Dubai law provides clear guidelines to prevent unreasonable rent hikes, ensuring a fair balance between landlords and tenants.
This blog explains the official rent increase brackets under Dubai tenancy law, provides examples, and shows how to calculate your position using market averages.
Legal Basis for Rent Increases in Dubai
Under Dubai Decree No. 43 of 2013, landlords may only increase rent during lease renewal if the current rent is significantly lower than the market average for comparable properties. The law outlines specific percentage brackets based on the difference between the existing rent and the average market rent.
Rent Increase Brackets – Dubai Lease Renewals
| Current Rent Compared to Market Average | Permitted Rent Increase |
| Equal to or up to 10% less | 0% (No increase allowed) |
| 11% to 20% less | 5% |
| 21% to 30% less | 10% |
| 31% to 40% less | 15% |
| More than 40% less | 20% |
Example for Better Understanding
Let’s assume the average market rent for a 2-bedroom apartment in your area is AED 120,000 per year.
| Current Rent | Difference from Market Average | Allowed Increase | New Rent (If Applied) |
| 108,000AED | 10% less | 0% | 108,000AED |
| 105,000AED | 12.5% less | 5% | 110,250AED |
| 96,000AED | 20% less | 5% | 100,800AED |
| 90,000AED | 25% less | 10% | 99,000AED |
| 72,000AED | 40% less | 15% | 82,800AED |
| 66,000AED | 45% less | 20% | 79,200AED |
What Tenants Should Know
Landlords cannot increase rent unless your current rent falls into one of the above categories.
The RERA Rental Index is the official benchmark for determining market averages.
If a landlord demands an unjustified increase, tenants can file a complaint with the Rental Dispute Center (RDC) in Dubai.
What Landlords Should Know
Increases must follow legal thresholds – even if demand in your area is high.
Before issuing a renewal notice with increased rent, use the RERA calculator to confirm eligibility.
A failure to comply with the law could lead to legal disputes or penalties.
Need Help with Lease Disputes or Rental Advice?
At Ahmad Abdulla Ahli Advocates And Legal Consultants, we specialize in real estate litigation and tenancy contract advisory. Whether you’re a tenant looking to challenge an illegal rent hike, or a landlord seeking guidance on lawful renewals, our expert legal team is here to assist.
📞 Contact Us Today for a confidential consultation.
Disclaimer:The opinions expressed in this blog are those of the respective authors. Our law firm does not endorse these opinions. While we make every effort to ensure the factual accuracy of the information provided in our blogs, inaccuracies may occur due to changes in the legislative landscape or human errors. It is important to note that our law firm does not assume any responsibility for actions taken based on the information presented in these blogs. We strongly recommend taking professional advise to ensure the best possible solution for your individual circumstances.
