Dubai: Has your landlord told you that your rent will go up when your tenancy contract is renewed?If you live in Dubai and are wondering whether the rent increase is valid or if you are legally entitled to dispute such a rent increase, there are clearly stipulated rights and responsibilities for both the tenants and the landlords when it comes to rent increase in Dubai’s Rental Law.Emirates 24|7 spoke with legal experts in Dubai to find out what tenants should know and what they can do when faced with a rent increase notice.1. The Smart Rental Index is your main point of referenceThe Dubai Land Department introduced the Smart Rental Index last year, to replace the earlier rent increase calculator, by introducing a more property specific assessment, according to Ahmed Khalili, associate at BSA Law.“Unlike the previous calculator, which relied more broadly on area and property-category averages, the Smart Rental Index provides a more property-specific assessment based on factors including actual rental values within the building, average rents in the relevant area and the building’s classification,” he said.Ahmed Khalili, associate at BSA LawThe classification of the building factors in construction quality, design, services and facilities, maintenance, sustainability and location, he added.The new rental index benefits both tenants and landlords, according to Zeiad Yehia, Legal Director at Al-Mur Law Firm.“For tenants, the principal benefit is that a poorly maintained or older building should not automatically be valued in the same way as a substantially better building merely because both are located in the same district,” Yehia said.“For landlords, improvements in the quality, maintenance and services of a building can be reflected more accurately. An owner or landlord may also apply to Dubai Land Department for the building’s classification to be reviewed or updated,” he added.To find out how you can use the DLD Rent Calculator, check out our detailed guide here.2. Rent increase is not allowed if the rent is within 10% of market averageThe DLD rent calculator factors in the market average for your property and depending on your current rent, informs you of whether or not your landlord is legally entitled to increase your rent.“Under Decree No. 43 of 2013, no increase is permitted where the existing rent is up to 10% below the applicable average rental value,” Khalili said.The permitted rent increase follows a sliding scale, which gives maximum percentage of rent increase depending on how low your current rent is to the market average:A maximum increase of 5% where the rent is between 11% and 20% below the average.A maximum increase of 10% where the rent is between 21% and 30% below the average.A maximum increase of 15% where the rent is between 31% and 40% below the average.A maximum increase of 20% where the rent is more than 40% below the average.3. Any rent increase should fall within these permissible limitsRent increase cannot be introduced mid-contractThe rent increase can only be implemented at the time of contract renewal, and cannot be introduced mid-contract, according to the legal experts who spoke with Emirates 24|7.4. Did you get a three-month notice?“Under Article 14 of Dubai Law No. 33 of 2008, amending Law No. 26 of 2007, any proposed amendment to the tenancy terms, including rent, must be notified at least 90 days before expiry, unless otherwise agreed by the parties,” Khalili said.He reiterated that any rent increase must fall within what is permitted as per the rental index and comply with the 90-day notice requirement.“Even if the Smart Rental Index permits an increase, it cannot be applied for that renewal if the required notice period has not been complied with,” he added.This law applies to most landlord-tenant relationships in Dubai, Khalili said, except for properties that are excluded from the law, like those located in free zones, which have their own specific tenancy legislation.5. Can my landlord increase the rent in the first two years?A common misconception among tenants, according to Yehia, is that there is a freeze on rent increase in the first two years of a tenancy relationship.“The original 2007 law contained wording restricting increases during the first two years of the tenancy. Article 9 was subsequently replaced by Law No. 33 of 2008, and the current legislation does not retain a general two-year rent freeze. A tenant should therefore rely upon the present protections: proper notice, the Smart Rental Index and the statutory increase bands,” Yehia said.6. Don’t ignore a rent increase notice, even if you think it is invalidYehia also advised tenants to not ignore a rent increase notice, even if the increase is beyond the permissible limit as per the DLD rent calculator.“They should respond promptly and in writing. They should explain the objection, attach the Index result where appropriate and offer to renew at the existing rent or at the maximum lawful rent. Simply ignoring the notice or withholding rent can unnecessarily weaken an otherwise sound position,” he said.7. What action can I take if the rent increase is unjustified?Once you have sent a written response to an unjustified rent increase, and your landlord still persists on it, you can raise your complaint with the Rental Disputes Centre (RDC), either through the RDC website or through an authorised centre.“The RDC provides an amicable-settlement channel. If an agreement is reached, it is signed by the parties, approved by the supervising judge and becomes enforceable. If no settlement is achieved, the matter may proceed before the First Instance Tribunal,” Yehia said.It is important to note, however, that if you do proceed with the complaint, you would need to submit the following documents in Arabic, or accompanied by a legal Arabic translation:The latest Ejari certificate and signed tenancy agreement.Your Emirates ID.The landlord’s increase notice and proof of when it was received.Any correspondence you have had with the landlord.The DLD Rental Index result.Evidence of previous rent payments.The proposed renewal agreement and rent cheques, where applicable.Your bank details and any other documents supporting the claim.For a renewal-related claim, the filing fee is 3.5% of the annual rent or lease value, subject to a minimum of AED 500 and a maximum of AED 20,000, in addition to the applicable service and administrative charges.“The precise fee will depend upon the remedies and financial claims included. Where an amicable settlement is reached through the Mediation and Conciliation Directorate, the legislation provides for half of the registration fee to be refunded,” Yehia added.The mediation process is typically completed within 15 days, although that period may be extended, according to Yehia.“The RDC reported an average settlement period of six days for cases settled during the second quarter of 2025,” he added.If the matter proceeds to the Court of First Instance, the time taken may extend up to a month or longer. While the case is in court, Yehia advised tenants to be aware of their rights and responsibilities:Continue complying with the tenancy and pay the undisputed rent. “The existence of a dispute is not a licence to stop paying,” he said.You can also use the ‘Offer and Deposit’ service by RDC, which allows tenants to submit the rent amount.The landlord is not allowed to disconnect services, change the locks or otherwise disturb the tenant’s use of the property, as per Article 34 of Law No. 26 of 2007.The landlord cannot physically evict the tenant without following the statutory process and obtaining an enforceable RDC order.If the tenancy expires and the tenant remains in occupation without objection from the landlord, Article 6 provides for renewal upon the previous terms for the same period or one year, whichever is shorter.“Where the landlord has expressly objected or a renewal dispute already exists, however, the tenant should not simply assume automatic renewal. They should seek a determination and, where necessary, use the Offer and Deposit procedure promptly,” Yehia added.
