Dubai’s New Rental Index: Rules for Rent Increases

Dubai’s updated rental index offers clear guidelines for landlords seeking to increase rent. Under Article 1 of Decree No. (43) of 2013, rent hikes depend on how much the current rent deviates from the area’s average, as determined by the Real Estate Regulatory Agency (Rera).

For properties rented at 10% below the average, no increase is allowed. If the rent is 11%-20% below average, a 5% increase can be applied. Similarly, 21%-30% below average allows a 10% hike, while 31%-40% below permits 15%. For properties more than 40% below the average, landlords can increase rents by 20%. These values ensure rent changes are aligned with market conditions, fostering fairness.

Landlords must notify tenants 90 days prior to the lease expiry if they wish to raise the rent, per Articles 13 and 14 of Law No. 33 of 2008. If there’s no agreement, the Rental Dispute Centre can mediate, using factors like the Rera Rent Index to establish fair rent.

The Rera Rent Index also reflects Dubai’s prevailing economic situation, allowing for adjustments that maintain market stability. Tenants and landlords may discuss and revise lease terms during renewal, ensuring mutual agreement.

In case of disputes, the Rental Dispute Centre offers a structured process for resolving disagreements. Dubai’s updated rental index not only defines transparent criteria for rent increases but also ensures that adjustments respect both tenant and landlord interests, balancing market dynamics.

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Source: https://www.khaleejtimes.com/uae/why-dubai-tenants-who-moved-to-other-emirates-are-set-to-return-in-2025

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