For a tenant living in Dubai, renewing the tenancy contract raises one important question every year: how much can the landlord raise the rent? In Dubai the answer is set by law, not by free agreement. This article is based on the text of "Decree No. 43 of 2013 determining rent increases for real property in the Emirate of Dubai" published by the Dubai Land Department, the Land Department's notice of 2 January 2025 on the "Smart Rental Index 2025" and the frequently asked questions page of the Rental Disputes Center; these sources were checked on 25 October 2026.
Decree 43 of 2013
The Ruler of Dubai issued this decree on 18 December 2013. Its Article 1 sets the maximum rent increase on renewal by how far the unit's current rent is below the average market rent:
| Current rent compared with the market average | Maximum increase |
|---|---|
| Less than 10% below the average | No increase |
| 11 to 20% below | 5% of the current rent |
| 21 to 30% below | 10% |
| 31 to 40% below | 15% |
| More than 40% below | 20% |
Article 2 of the decree says the rule applies to all public and private landlords in the Emirate of Dubai, including special development zones, free zones and the Dubai International Financial Centre. Article 3 says the average market rent is set by the "Rent Index of the Emirate of Dubai" approved by the Real Estate Regulatory Agency (RERA).
The important point: if your rent is already close to the market average or above it, under this table the landlord cannot raise it.
The Smart Rental Index 2025
On 2 January 2025 the Dubai Land Department introduced the "Smart Rental Index 2025". According to the notice:
| Subject | What the Land Department says |
|---|---|
| Aim | More transparent and fairer rental valuation |
| Building class | Each building is classified by a set of criteria: structure, quality of finishing and maintenance, location and available services |
| Increase bands | Increases start at 0 per cent and reach 20 per cent |
| Legal basis | The 2013 decree on rent increases |
| Channels | The Dubai REST app and the Ejari system |
The Land Department's notice gives the decree number as "34", but the text of the decree published by the same department carries the number "43 of 2013"; this article follows the text of the decree.
Notice periods and other rights
The Rental Disputes Center FAQ page gives two notice periods:
| Subject | What the Center says |
|---|---|
| Changing the contract terms on renewal | At least 90 days before the contract ends, unless both parties agree otherwise |
| Eviction for the landlord's own use | 12 months' notice |
So if the landlord wants to change the rent or another term on renewal, they must give notice at least 90 days before the contract ends. Under the same rule, a notice later than this is not enough for a change at that renewal.
If a dispute arises
The Rental Disputes Center at the Dubai Land Department is the body that hears rental disputes. Filing fees according to its FAQ page:
| Type of case | Fee |
|---|---|
| Eviction, renewal, rent claims and similar | 3.5% of the annual rent, at least AED 500 and at most AED 20,000 |
| Monetary claim | 3.5% of the amount claimed, at least AED 500 and at most AED 15,000 |
| Settlement and reaching an agreement | Half of the fee paid for the main case is refunded |
A case is filed by creating an account in the disputes system, entering the contract and party details, uploading the documents and submitting the request.
Two examples
These examples are hypothetical and only apply the decree's official bands. The market average for each property must be taken from the official index.
Example 1: a flat with rent slightly below the market. The current annual rent is AED 80,000 and the index shows an average of AED 100,000.
| Item | Calculation | Result |
|---|---|---|
| Distance from the average | (100,000 − 80,000) ÷ 100,000 | 20% below |
| Decree band | 11 to 20% | Maximum 5% |
| Maximum new rent | 80,000 × 1.05 | AED 84,000 |
Example 2: rent far below the market. The current rent is AED 55,000 and the index average is AED 100,000.
| Item | Calculation | Result |
|---|---|---|
| Distance from the average | (100,000 − 55,000) ÷ 100,000 | 45% below |
| Decree band | More than 40% | Maximum 20% |
| Maximum new rent | 55,000 × 1.20 | AED 66,000 |
If in either example the rent had been equal to or above the average, no increase would have been allowed. If the landlord asks for more than the cap or has not given the 90 days' notice, the official route is the Rental Disputes Center; for a case with an annual rent of AED 80,000, the 3.5% filing fee comes to AED 2,800.
Practical points
- Before renewal, look up the average rent for your property in the Land Department's official index.
- Note the contract end date and check whether the notice of an increase arrived at least 90 days before it.
- Keep notices in writing and dated.
- Before going to the Rental Disputes Center, try talking and settling; on settlement half of the fee is refunded.
- After agreeing, register the new contract in Ejari; see the article "Registering a tenancy contract in Dubai (Ejari)".
Royal Golden does not give legal or real estate advice. This article is general information, and the decision on any dispute rests with the Rental Disputes Center and the official Dubai authorities.
Sources
- Dubai Land Department, Decree No. 43 of 2013 determining rent increases for real property in the Emirate of Dubai — https://dubailand.gov.ae/media/z2dn3gtr/rental-increase-decree-43-in-dubai.pdf (checked on 25 October 2026)
- Dubai Land Department, notice of 2 January 2025 on the Smart Rental Index 2025 — https://dubailand.gov.ae/en/news-media/smart-rental-index-announcement/ (checked on 25 October 2026)
- Rental Disputes Center, frequently asked questions — https://rdc.gov.ae/en/frequently-asked-questions/ (checked on 25 October 2026)