Landlords in Dubai cannot name any price when a lease expires. Rent can rise only at renewal, only within set caps, and only with 90 days’ written notice. Here are the four rules to check before you renew.
1. The Smart Rental Index Replaced the Old Calculator
The Dubai Land Department introduced the Smart Rental Index to replace the older rent calculator, moving to a property-specific assessment. It looks at actual rental values in the building, average rents in the area and the building’s classification. That classification covers construction quality, design, services, facilities, maintenance, sustainability and location, so an older or poorly maintained building should not share the same market value as a superior one in the same district. Landlords can ask the Dubai Land Department to review a building’s classification if they make improvements.
2. Rent Stays Locked If You Are Within 10% of the Market Average
Under Decree No. 43 of 2013, no increase is allowed where your rent is up to 10% below the average rental value. Beyond that, a sliding scale applies:
| Your rent compared with the average | Maximum increase |
|---|---|
| Up to 10% below | None |
| 11% to 20% below | 5% |
| 21% to 30% below | 10% |
| 31% to 40% below | 15% |
| More than 40% below | 20% |
3. No Mid-Contract Increases
A landlord cannot change your financial terms halfway through an active lease. Any increase can only start at renewal.
4. The 90-Day Notice Is Mandatory
Under Article 14 of Dubai Law No. 26 of 2007, as amended by Law No. 33 of 2008, any change to tenancy terms, including rent, must be notified at least 90 days before the contract expires, unless both parties agree otherwise. Without that notice the landlord cannot apply an increase, even if the index would allow one. These rules cover most landlord-tenant relationships in Dubai, but free zones have their own tenancy rules.
If you disagree with an increase, you can take the dispute to the Rental Disputes Centre.
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