A Dubai landlord can raise the rent only when the lease is renewed, and only by 0% to 20%, depending on how far the current rent sits below the average rent for similar homes. If your rent is within 10% of that average, it cannot go up at all; the full 20% is allowed only when the rent is more than 40% below it. The bands are set by Decree No. 43 of 2013, the average comes from the Dubai Land Department's (DLD) rental index, and either side that wants to change the rent must say so at least 90 days before the lease ends.
This matters to you whether you rent a home in Dubai or plan to buy one and let it out. It is a summary of the rules, not legal advice: your tenancy contract and the facts of your case count, and the Rental Dispute Settlement Center decides disputes.
Which laws set the rules?
Three texts, all on the Government of Dubai's legislation portal:
- Law No. 26 of 2007 regulates the relationship between landlords and tenants in Dubai.
- Law No. 33 of 2008, issued on Dec 1, 2008, replaced several of its articles, including those on rent, renewal and eviction. Where the two differ, the 2008 wording is the one in force.
- Decree No. 43 of 2013, issued on Dec 18, 2013, sets the maximum increase at renewal.
The English versions on the portal say the Arabic text prevails if the two ever differ.
What is the maximum rent increase?
Article 1 of Decree No. 43 of 2013 sets five bands, measured against the average rent of similar units:
| Your current rent is... | Maximum increase at renewal |
|---|---|
| Up to 10% below the average | None |
| 11% to 20% below the average | 5% |
| 21% to 30% below the average | 10% |
| 31% to 40% below the average | 15% |
| More than 40% below the average | 20% |
The percentage is of your current rent, not of the gap. Say you pay AED 80,000 a year and the index puts similar homes at AED 100,000: your rent is 20% below the average, so the most it can rise is 5%, to AED 84,000. Pay AED 95,000 for the same home and it cannot rise at all. These numbers are only to show the arithmetic; your own result comes from the index.
The cap is a ceiling, not an entitlement. A landlord and tenant can agree on a smaller increase, no increase, or a reduction: Article 13 as amended in 2008 lets them reconsider "increasing or reducing the Rent" before the lease expires.
According to Article 2, the decree applies to every landlord in Dubai, private or public, including in special development zones and free zones.
How is the average rent worked out?
Article 3 of the decree says the average comes from the rent index approved by the Real Estate Regulatory Agency (RERA), part of the DLD. Today that is the DLD's Smart Residential Rent Index. Its own FAQ says:
- Buildings are classified by construction quality, architectural design, energy efficiency, services and location, using artificial intelligence and data that includes registered rental contracts.
- Increases range from 0% to 20%, based on the difference between the current rent and the average market rent.
- It covers residential buildings only, across all of Dubai's residential areas including free zones and private developments, but excluding the Dubai International Financial Center (DIFC). Commercial and industrial indices are still being developed.
- It is updated once a year, and an owner or landlord can ask the DLD to update a building's classification.
You can run the check yourself with the DLD's Rental Index service, on its website or in the Dubai REST app, by entering the property's details and current rent.
One point to confirm: Decree No. 43 names the DIFC as covered, while the index's FAQ says the index excludes it. If the home is in the DIFC, confirm how an increase is assessed before you rely on the bands above.
How much notice does a landlord have to give?
At least 90 days before the lease ends. Article 14, as amended in 2008, says that a party who wants to change any term of the lease at renewal, the rent included, must notify the other "no less than ninety (90) days" before the contract expires, unless the two have agreed otherwise. Check your contract for a different notice clause, and keep the notice in writing.
The rent cannot simply rise in the middle of a lease: the decree applies "when renewing" a lease, and the law ties rent changes to renewal.
You may read elsewhere that rent cannot rise in the first two years of a tenancy. That rule was in Article 9 of the original 2007 law, but Law No. 33 of 2008 replaced Article 9 with a new text that no longer contains it.
What if the landlord and tenant cannot agree?
Either side can take it to the Rental Dispute Settlement Center, the tribunal set up under Decree No. 26 of 2013. Under the amended Article 13, if the two fail to agree at renewal, the tribunal may set a fair rent, weighing the criteria in Article 9: RERA's rules on increases, the economy, the condition of the property and the rents of similar property in the same area.
Leases must also be registered. Article 4 says every lease covered by the law, and any amendment to it, is registered with RERA (the system known as Ejari). A renewal at a new rent is an amendment, so register it.
Can a landlord ask a tenant to leave instead?
Not to get round the cap. When a lease ends, the amended Article 25(2) lets a landlord seek eviction "only if":
- the owner will demolish and rebuild, or add structures that stop the tenant using the home, with the permits in hand;
- the home needs restoration or comprehensive maintenance that cannot be done with the tenant in it, shown by a technical report issued or certified by Dubai Municipality;
- the owner wants it for their own use or a first-degree relative's, and proves they own no other suitable property; or
- the owner wants to sell it.
For any of these, the landlord must give the reasons at least 12 months before the eviction date, by notary public or registered mail. If a landlord takes a home back for their own use, Article 26 bars renting it to someone else for two years for a residential property (three for non-residential), or the tenant can ask the tribunal for compensation.
During a lease, the grounds are narrower and tied to the tenant's conduct, such as rent unpaid 30 days after a notice to pay, or subletting without written consent (Article 25(1)).
What does this mean if you buy to let?
- Budget on today's rent rising slowly, if at all. Once a tenant is in, the increase at each renewal is capped by the index. Never count on a rent you have not checked against it.
- A sale does not end a tenancy. Article 28 says a change of owner does not affect the tenant's right to stay under a fixed-term lease. If you buy a home with a tenant in it, you take over that lease and its rent.
- Plan for the yearly costs you carry as the owner, such as service charges, which the owner pays even when the home is let (see what service charges are in Dubai).
Homes.me does not promise any rent or return. To compare areas, start from the Dubai guide or a community such as Jumeirah Village Circle, use the cost calculators in our tools, or ask the Homes.me advisor a question.
In short
- Rent rises only at renewal, by 0%, 5%, 10%, 15% or 20%, depending on how far below the index average it is.
- Rent within 10% of the average cannot be raised.
- Notice of a change is due at least 90 days before the lease ends, unless the contract says otherwise.
- Eviction at the end of a lease needs one of four reasons and 12 months' notice by notary or registered mail.
- Check your own figure with the DLD's Rental Index, and confirm the rules for a DIFC home.