In Dubai, landlords cannot increase rent arbitrarily to match market rates due to regulations set by the Real Estate Regulatory Agency (RERA).
The maximum allowable rent increase depends on how much below the average rental value the current rent is, as per Decree No. 43 of 2013. Specifically:
- If rent is up to 10% below the average, no increase is allowed.
- For 11%-20% below, a 5% increase is permitted.
- For 21%-30% below, the increase can be 10%.
- For 31%-40% below, a 15% increase is allowed.
- If more than 40% below, a maximum of 20% increase is allowed.
These averages are determined by Dubai’s Rent Index.
Landlords must give tenants at least 90 days’ notice before any rent change upon lease renewal.
If no agreement is reached on new terms, the Rental Dispute Centre may intervene to set a fair rent.
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