Introduction to Dubai Rental Market
Dubai’s rental market is renowned for its vibrancy and constant evolution, shaped by the city’s rapid growth, diverse population, and thriving tourism sector. As a result, rental prices in Dubai can shift quickly, making it crucial for both tenants and landlords to stay informed about the latest laws and regulations. The Real Estate Regulatory Agency (RERA) plays a pivotal role in overseeing the rental market, ensuring that rent increases are transparent and reflect the current market value. To support this, the Dubai Land Department has introduced the Smart Rental Index—a powerful tool that benchmarks permissible rent increases based on property type, location, and amenities. This index helps maintain a fair balance between landlords and tenants, providing clarity and stability in Dubai’s dynamic real estate landscape.
Understanding the RERA Rental Law and the 90-Day Rule
Dubai’s rental market remains one of the most dynamic in the world, offering diverse options for those seeking everything from apartments for rent in Dubai to luxury villas. A villa is considered a premium property type in Dubai. However, both tenants and landlords must carefully navigate rent increases, especially under the updated laws for 2025. The legal framework governing rent increases in Dubai’s rental market is designed to regulate how and when rents can be adjusted.
Here’s everything you need to know about the 90-day rule, valid notifications, and how to manage rent adjustments fairly. The legal framework is designed to ensure fairness for both landlords and tenants, addressing the concerns that many tenants have about understanding the rules.
Dubai’s Real Estate Regulatory Agency (RERA) governs rental matters through Law No. 26 of 2007 and its amendments. A key provision is the 90-day rule. Dubai’s rent increase law plays a crucial role in regulating rent hikes, and the increase law outlines the legal procedures landlords must follow. The law is aimed at allowing landlords to adjust rents within regulated limits while protecting tenants from excessive increases.
What is the 90-Day Rule?
If a landlord plans to increase rent, they must notify the tenant at least 90 days before the end of the current tenancy contract, unless the parties agree otherwise. This notice must be given before the lease renewal date to be valid.
Why Does It Matter?
- If notice isn’t given 90 days in advance, the landlord cannot legally increase the rent.
- Tenants have the right to refuse a late rent hike.
- Rent increase notices must be provided in writing and in accordance with the law.
For tenants exploring 1 bedroom apartments for rent in Dubai or 2 bedroom apartments for rent in Dubai, understanding this rule helps avoid unexpected financial shocks. Lease renewals are a key time when rent increases may be proposed. If you’re considering buying property, use a mortgage loan calculator in Dubai to estimate your true home costs before making a decision.
Market Rate Determination
Accurately determining the market rate of a property is essential when considering a rent increase in Dubai. The RERA Rental Index is the official reference for evaluating the current market value of similar properties within the same area. By consulting the rental index, both landlords and tenants can compare the average rent for similar units, taking into account factors such as property type, size, location, and amenities. This ensures that any proposed rent increase is justified and aligns with the law in Dubai. Using the RERA Rental Index allows landlords to adjust rents in response to current market conditions, while tenants can verify that their rent remains competitive and fair. Ultimately, this process helps prevent disputes and supports a transparent rental market for all parties involved.
How Rent Increases Are Calculated in Dubai
All calculations for rent increases in Dubai are governed by the rent increase law, which sets out the legal framework for adjusting rents. Not all rent increases are arbitrary. Dubai has a Rent Index provided by RERA—referred to as the RERA index—to guide allowable increases. These are the rent increase rules enforced in Dubai.
Here’s a simple breakdown:
- If the current rent is less than 10% below market average: No increase allowed.
- 11% – 20% below market average: Up to 5% increase.
- 21% – 30% below market average: Up to 10% increase.
- 31% – 40% below market average: Up to 15% increase.
- More than 40% below market average: Up to 20% increase.
Each category above represents the maximum percentage allowed by law for a rent increase. All rent increases must remain within the legal limits set by RERA.
How to Check?
Use the official Dubai Land Department’s Rental Calculator to know your unit’s standard range — whether you are in a one bedroom apartment for rent in Dubai or a larger property. The calculator helps determine the permissible rent increase for your property by comparing your property’s rent to the market average. For example, areas like Dubai Marina are considered prime locations and typically command higher rental values according to the RERA index.
Valid Notice Formats: What Counts as Legal Notification?
Not all casual notifications are valid under Dubai law. Here’s what counts:
✅ Written Notice: Must be documented — email or paper letter.
✅ Registered Delivery: Through Ejari-linked communication systems, registered email, or hand-delivered with proof.
✅ Clear Terms: The notice must explicitly state the new rental amount and the effective date.
WhatsApp messages, casual phone calls, or verbal conversations do not qualify as valid notice under RERA regulations.
If you’re renting an apartment for rent in Dubai monthly, make sure the terms are clear on notice periods even in short-term contracts.
Lease Renewal Process
The lease renewal process in Dubai is governed by clear legal guidelines designed to protect both landlords and tenants. When a lease is approaching its renewal date, landlords must provide tenants with a written notice detailing any proposed rent increase at least 90 days in advance. This notice period gives tenants ample time to review the new terms and negotiate if necessary. If both parties agree to the proposed rent increase, the lease can be renewed with the updated terms. However, if the tenant believes the increase is unjustified, they have the right to file a complaint with the Rental Dispute Settlement Centre (RDSC). The RDSC will then review the case, referencing the RERA Rental Index to determine a fair adjustment. Understanding the lease renewal process and adhering to the legal requirements helps landlords and tenants avoid misunderstandings and ensures a smooth transition at the end of each tenancy period.
Landlord Responsibilities
Landlords in Dubai are entrusted with several important responsibilities to ensure a positive rental experience for their tenants. They must maintain the property in good condition, address necessary repairs promptly, and comply with all safety and security regulations. When considering a rent increase, landlords are required to provide tenants with a written notice that clearly states the proposed new rent and the reasons for the adjustment. This notice must be delivered in accordance with the law, giving tenants sufficient time to respond. Additionally, landlords are responsible for registering every lease contract with the Dubai Land Department and obtaining an Ejari certificate, which is mandatory for all rental agreements in Dubai. By fulfilling these obligations, landlords help foster trust and cooperation, reducing the likelihood of disputes and ensuring compliance with Dubai’s rental laws.
Tenant Rights and Protections
Tenants in Dubai benefit from a robust set of rights and protections designed to ensure fair treatment and financial stability. They are entitled to reasonable rent increases that comply with the Smart Rental Index and are protected from excessive or illegal rent hikes. If a tenant receives a rent increase that exceeds the permissible limits or is not properly notified, they can seek recourse through the Rental Dispute Settlement Centre (RDSC). The Dubai government, through the Dubai Land Department and RERA, provides additional support and guidance to tenants facing rental disputes. By leveraging resources like the Smart Rental Index and understanding their legal rights, tenants can confidently navigate the Dubai rental market, secure in the knowledge that their interests are safeguarded by comprehensive laws and transparent processes.
What Tenants Should Do if They Receive a Short Notice
If a landlord provides less than 90 days’ notice, tenants have options:
- Negotiate: Politely remind the landlord of the law and request to maintain the current rent. If the landlord fails to provide the mandated 90-day notice, the rent increase is invalid.
- File a Complaint: Submit a case to the Rental Dispute Settlement Centre (RDSC) under the DLD.
- Continue at Current Terms: If no valid notice was given, the existing contract terms roll over automatically.
It’s important for tenants — whether seeking apartments for rent in Dubai or 2 bedroom apartments for rent in Dubai — to know their rights to avoid paying illegal hikes. By law, tenants are also protected from excessive rent increases, ensuring fair treatment and market stability.
Tips for Landlords and Tenants to Avoid Disputes Over Rent Hikes
For Landlords:
- Send written notice at least 90 days before contract expiry.
- Use the RERA Rental Calculator to justify any increase and ensure rent increases remain within legal limits by following RERA guidelines.
- Document tenant communication properly.
For Tenants:
- Keep a copy of your tenancy contract and all notices.
- Respond to any notices in writing.
- Check the Rent Index before accepting a rent hike. RERA’s primary role is to oversee fair rent adjustments and help resolve disputes, protecting tenant rights.
Being proactive ensures a smooth, dispute-free rental experience — essential whether you’re renting a one bedroom apartment for rent in Dubai or a penthouse!
FAQ’s
What happens if a landlord does not give a 90-day notice for rent increase?
The landlord cannot legally raise the rent for the next lease term.
How much can a landlord increase the rent in Dubai in 2025?
The increase must follow the RERA Rental Index guidelines based on current market rates.
Is WhatsApp notice valid for rent increase?
No. Only formal written and registered notices are considered legal.
Can a tenant dispute a rent increase?
Yes, tenants can dispute unfair rent increases at the Rental Dispute Settlement Centre.
Do monthly rental apartments follow the 90-day rule?
It depends on the contract terms; monthly rentals often have flexible renegotiation clauses.
Conclusion
Understanding your rights and responsibilities regarding rent increases in Dubai is vital for both landlords and tenants. Whether you’re planning to move into a 1 bedroom apartment for rent in Dubai, explore monthly apartments, or invest in long-term rentals, staying informed helps protect your interests.
In 2025, rental trends will remain competitive. Make sure you’re prepared to buy your first home in Dubai, legally protected, and ready for Renting vs. Buying property in Dubai! Dubai’s vibrant rental scene