Dubai is known for its bustling real estate market and diverse population. If you are a tenant in Dubai, it’s important to understand the regulations surrounding rent increases. In this article, we will explore how much rent a landlord can increase every year in Dubai.
Rent Increase Limits
In Dubai, rent increases are governed by Law No. 26 of 2007, also known as the Dubai Rent Law. According to this law, a landlord can increase the rent of a property, but there are certain restrictions in place to protect tenants from exorbitant increases.
Capped Increase
The Dubai Rent Law states that the maximum rent increase a landlord can impose on a tenant is 20% of the existing rent. This means that if your current rent is AED 10,000 per year, your landlord can increase it by a maximum of AED 2,000 per year.
Index-Based Increase
In some cases, landlords in Dubai can also increase the rent based on the Real Estate Regulatory Agency’s (RERA) rental index. The rental index provides guidance on rent levels based on the location, type, and size of the property. If the rental index reveals that the market rates have increased, the landlord can propose a rent increase to bring the rent in line with the index.
Exceptions to the Rule
There are a few exceptions to the rent increase limits imposed by the Dubai Rent Law. If the rental contract explicitly states that the rent can be increased by a higher percentage or if the property is exempt from the law, the landlord may be able to increase the rent above the capped limit. It’s important to review your rental contract carefully and seek legal advice if needed.
Notice Period
If your landlord intends to increase your rent, they must provide you with a written notice at least 90 days before the expiration of the rental contract or the proposed increase date, whichever is earlier. This notice should include the details of the proposed increase and the effective date.
As a tenant in Dubai, it’s crucial to be aware of your rights when it comes to rent increases. The Dubai Rent Law provides important protections by setting limits on the amount that landlords can increase the rent each year. Remember to carefully review your rental contract and seek legal advice if you have any concerns or questions about rent increases in Dubai.
How much landlord can increase rent in Dubai?