Dubai landlords can raise rent only at lease renewal per RERA

In Dubai, a landlord may raise rent only at lease renewal, within the limits of the RERA Rental Index set by Decree No. 43 of 2013, after giving at least 90 days' notice; the governing framework is Dubai Law No. 26 of 2013 creating the Rental Disputes Centre and the UAE Civil Transactions Law on lease agreements.

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WHAT LEGAL FRAMEWORK GOVERNS RENT INCREASES IN DUBAI?

The primary legal instruments are Dubai Law No. 26 of 2013 (Rental Disputes Settlement Centre Law) and Executive Council Decree No. 43 of 2013 concerning the determination of rent increases in the Emirate of Dubai, which adopts the RERA Rental Index as the benchmark. These laws apply specifically to tenancies located within the Emirate of Dubai; free-zone jurisdictions such as DIFC and ADGM follow their own regimes. Under Dubai Law No. 26/2013, the Rental Disputes Centre has exclusive jurisdiction over disputes arising from tenancy contracts, including rent-increase disagreements. The Civil Transactions Law (Federal Decree-Law No. 5 of 1985, as amended) supplies the general principles of contract performance and termination that underpin the tenancy relationship.

Decree 43/2013 prescribes a sliding scale of permissible increases based on how the current rent compares to the index value for the property type and area. If the rent is up to 10 % below the index, no increase is allowed; if it is 11-20 % below, a maximum of 5 % may be applied; 21-30 % below permits up to 10 %; 31-40 % below allows up to 15 %; and more than 40 % below permits up to 20 %. The decree also mandates that any notice of revision must be served at least 90 days before the lease expiry date; failure to observe this period results in the renewal occurring at the existing rent.

HOW MUCH CAN A LANDLORD INCREASE RENT UNDER THE RERA RENTAL INDEX?

The allowable percentage is determined by the RERA Rental Index, which is published annually by the Real Estate Regulatory Agency and reflects market averages for similar properties. According to Decree 43/2013, the increase is capped as follows:

• Rent ≤ index - 10 % → 0 % increase
• Rent = index - 11 % to - 20 % → maximum 5 % increase
• Rent = index - 21 % to - 30 % → maximum 10 % increase
• Rent = index - 31 % to - 40 % → maximum 15 % increase
• Rent < index - 40 % → maximum 20 % increase

For example, if a commercial unit's current rent is AED 100,000 per annum and the RERA index for that category and locality is AED 130,000, the rent is 23 % below the index, permitting a maximum increase of 10 % (AED 10,000). The index is updated each year, and landlords must use the version applicable at the time of notice. The RERA website provides the index tables, and the Rental Disputes Centre applies them when assessing disputes.

WHAT NOTICE PERIOD IS REQUIRED FOR A RENT INCREASE?

Decree 43/2013 expressly requires that a landlord serve a written notice of the proposed rent revision at least 90 days before the lease expiry date. The notice must specify the new rent amount, the basis for the calculation (reference to the RERA index), and the effective date, which coincides with the start of the renewed term. If the notice is delivered after the 90-day window, the renewal is deemed to occur at the existing rent, and any attempt to enforce a higher amount is unenforceable.

The notice may be delivered via registered mail, courier with acknowledgment of receipt, or any method that provides proof of delivery; the tenant's acknowledgment is not required for validity, but retaining proof of service is advisable. In practice, landlords often attach a copy of the relevant RERA index excerpt and a brief explanation of how the percentage was derived.

CAN A LANDLORD INCREASE RENT DURING THE LEASE TERM?

No. Both Dubai Law No. 26/2013 and Decree 43/2013 restrict rent revisions to the renewal stage. The tenancy contract may contain a clause providing for fixed, agreed-upon increases during the term (e.g., a 5 % annual step), but such provisions must be expressly negotiated and recorded in the lease; they are not governed by the RERA index. If the lease is silent on mid-term adjustments, the landlord cannot unilaterally raise the rent until the contract reaches its expiry date and the renewal process is initiated.

Any attempt to impose a rent increase outside the renewal window constitutes a breach of contract and may give the tenant grounds to file a claim before the Rental Disputes Centre for restitution of any overpaid amounts and for a declaration that the increase is void.

WHAT REMEDIES DOES A TENANT HAVE IF THE INCREASE IS UNLAWFUL?

A tenant who receives an unlawful rent increase notice may:

1. Reject the increase in writing and continue to pay the existing rent, citing non-compliance with the 90-day notice requirement or the RERA index limits.
2. File a claim with the Rental Disputes Centre within 30 days of receiving the notice, requesting a determination that the increase is invalid and an order to pay the lawful rent.
3. Seek recovery of any excess payments already made, plus possible compensation for legal costs if the claim succeeds.

The RDC will examine the lease, the notice served, and the applicable RERA index. If it finds the increase non-compliant, it will order the landlord to revert to the previous rent and may award the tenant the difference between the amount paid and the lawful rent, plus interest at the rate prescribed by the UAE Civil Transactions Law for delayed payment.

FREQUENTLY ASKED QUESTIONS

Does the RERA rental index apply to both residential and commercial properties?
Yes. Decree 43/2013 covers all real estate units located within the Emirate of Dubai, irrespective of use. The index is published separately for residential, commercial, and industrial categories, and the appropriate table must be consulted based on the property's classification.

Can a tenant refuse to pay the increased rent if the landlord has not provided the RERA index reference?
The tenant may withhold payment of the disputed portion only after formally notifying the landlord of the deficiency and giving the landlord a reasonable opportunity to correct the notice. If the landlord fails to amend the notice within a reasonable period (commonly interpreted as 10 business days), the tenant may continue to pay the original rent and seek redress through the RDC.

What happens if the lease includes a clause allowing annual increases of a fixed percentage?
Such a clause is enforceable as a contractual agreement between the parties, provided it was included at the time of signing and does not violate any mandatory provision of law. The fixed percentage operates independently of the RERA index, but the landlord must still adhere to any notice requirements stipulated in the lease or by law.

Is the 90-day notice period waivable by mutual consent?
The parties may agree to a shorter notice period contractually, but the statutory minimum of 90 days under Decree 43/2013 is considered a matter of public order in Dubai tenancy matters. The Rental Disputes Centre has held that any agreement attempting to reduce this period is void because it undermines the protective intent of the decree.

How does the RDC treat disputes where the landlord claims the rent is already below market value?
The RDC does not assess "market value" subjectively; it applies the objective benchmark of the RERA rental index. Even if the landlord believes the rent is low, the increase must still conform to the index-based percentages and notice rules. Any claim of under-rent is not a legal basis for exceeding the prescribed limits.

Are there any penalties for a landlord who issues an unlawful rent increase notice?
Decree 43/2013 does not prescribe a specific monetary penalty for non-compliant notices. However, the RDC may order the landlord to repay any excess rent collected, pay legal costs incurred by the tenant, and, in repeated cases, consider the conduct when assessing future claims or when deciding on enforcement actions such as eviction proceedings.

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