May 22, 2025 .

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Do you know the rent Increase Limits in Dubai: Guide for Tenants and Landlords

Rent increase limit in dubai

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 RentDifference from Market AverageAllowed Increase

New Rent (If Applied)

 108,000AED10% less0% 108,000AED
 105,000AED12.5% less5%110,250AED 
 96,000AED20% less5% 100,800AED
 90,000AED25% less10% 99,000AED
 72,000AED40% less15% 82,800AED
 66,000AED45% less20% 79,200AED

What Tenants Should Know

  1. Landlords cannot increase rent unless your current rent falls into one of the above categories.

  2. The RERA Rental Index is the official benchmark for determining market averages.

  3. If a landlord demands an unjustified increase, tenants can file a complaint with the Rental Dispute Center (RDC) in Dubai.

What Landlords Should Know

  1. Increases must follow legal thresholds – even if demand in your area is high.

  2. Before issuing a renewal notice with increased rent, use the RERA calculator to confirm eligibility.

  3. 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.


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Disclaimer: This blog is intended for informational purposes only and does not constitute legal advice. For specific matters, please consult a licensed legal professional.

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