UAE Property: ‘Are there rules to limit arbitrary rent increases in Dubai?’

Question: My rent renewal is due in a few months’ time and my landlord said he wants to increase the rent by 20 per cent. I believe the current rent I pay is already high and thought there were rules to limit these increases. Can you explain how much he is legally allowed to increase my rent by? LB, Dubai

Answer: You are absolutely right to question this, because landlords in Dubai cannot simply decide to increase rent by any amount they choose. Rent increases are strictly regulated under the law and linked to the Real Estate Regulatory Agency’s Smart Rental Index, which compares your current rent against average market rents for similar properties in your community.

Here’s how it works:

• If your current rent is within 10 per cent of the market average, the landlord cannot increase your rent at all.
• If your rent is 11 per cent to 20 per cent below the average, the maximum increase allowed is 5 per cent.
• If it is 21 per cent to 30 per cent below, the increase can be up to 10 per cent.
• If it is 31 per cent to 40 per cent below, the increase is capped at 15 per cent.
• If it is more than 40 per cent below, only then can the landlord apply the maximum increase of 20 per cent.

So, a 20 per cent increase is only legal if your current rent is significantly lower than market levels. For example, if market rent is Dh100,000 ($27,229) and you currently pay Dh60,000, then yes, a 20 per cent increase could be applied. But if you are already paying close to Dh90,000 in that scenario, then no increase would be permitted.

You can check this yourself through the Dubai Rest app or the Dubai Land Department website, which provides the official index. It is a good idea to print or screenshot the result as evidence if needed.

If your landlord insists on an increase above the legal limit, you should first communicate with them in writing, referencing the law. If the matter is not resolved, you have the right to file a complaint with the Rental Dispute Settlement Centre (RDSC), which will enforce the correct amount.

This system ensures that tenants are protected from arbitrary rises while also giving landlords some flexibility to keep rents aligned with the market.

Q: My landlord gave me a 12-month notice to vacate last year because he said he wants to sell the apartment. However, I have recently seen the same property advertised online for rent again. Is he allowed to re-rent it? ER, Dubai

A: This is unfortunately a situation I hear about quite often and the law is very clear on it. A landlord can only evict a tenant under certain legally defined conditions, according to Law 33 of 2008, which includes:

1. If the landlord intends to sell the property.
2. If the landlord intends to move in themselves or require possession for a first degree relative.
3. If the landlord intends to renovate extensively, which would prevent a tenant from residing while the work is carried out.
4. If the property requires demolition.

If the reason given is to sell, then the landlord must issue a 12-month eviction notice through the Dubai notary public or registered courier. Once the property is vacated, the landlord must follow through on that reason.

If, instead of selling, the landlord re-rents the property before a two-year period, then that constitutes a misuse of the law. In such a case, tenants are entitled to file a case at the RDSC and can claim compensation, which could be assessed as the equivalent of one year’s rent at the prevailing market rate in some cases.

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There are a few points to consider, too. If the landlord wants to re-rent the property due to perhaps his circumstances having changed, he must give you the first right of refusal to re-rent it, even if you subsequently moved out. He would need your no objection to re-let it. Without this, you would be quite within your right to file a case for wrongful eviction.

It is also worth mentioning that the notice period starts only once the tenant has received the proper notarised notice. WhatsApp, email or verbal notices are not valid in the eyes of the law.

So, in your case, if the property was advertised for rent again after you vacated, you should gather evidence such as screenshots of the listing, dates and any correspondence and then file a case at the RDSC. The system is designed to protect tenants from this kind of misuse.

One last point: be careful about online property adverts as sometimes it may seem that your property is being advertised when in reality, it is a similar unit, so check this thoroughly.

The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario@allegiance.ae