Property rents vary by type and neighbourhood in Dubai. The rental value has increased year on year. In 2025, the average rental value has increased by 5%, with some areas, such as JVC and Business Bay, recording rent increases of up to 15%. With rent increasing, renewal contracts also see price increases. But can a landlord increase rent in Dubai, and how much? Yes, they can.
Here, we’ll go through the most important part of renewing tenancy contracts – rent increase law.
Key Takeaways
- Landlords can increase rent in Dubai after the contract expires
- Rent increase can be up to 20% depending on the RERA Smart Rental Index Calculator
- Landlords must provide a notice 90 days before to amend any terms in the renewal contract, including rent and other conditions
Can Landlords Increase Rent in Dubai?
Yes, landlords can increase rent in Dubai, but they must follow the Dubai tenancy laws. Under Law No. 26 of 2007, Article 9 states that landlords can increase the rent or amend other terms after two years from the contract’s initiation.
Also, if the landlord wishes to increase the rent, they must notify tenants 90 days before the tenancy contract expires. That said, the rent increase must be in line with the Smart Rental Index in Dubai.
If the tenant doesn’t agree to the rent increase and the negotiations fail, both parties can terminate the contract after a mutual agreement. However, if the landlord requests eviction, they must send the tenant a notice 90 days before the tenancy contract’s expiry.
What Does the Rent Increase Law Say?
The Decree No. 43 of 2013 allows landlords to increase rent, but with some conditions. Dubai Land Department (DLD) has initiated a Smart Rental Index – a tool that helps tenants and landlords find the average rent in a specific area.
If the landlords increase the rent, it must meet the following criteria:
- No rent increase if the current rent is 10% less than the average rental price on the rental index
- Only a 5% increase is allowed if the current rent is 10% to 20% less than the average rent
- A 10% rent increase when the current contract’s rent is 20% to 30% less than the average rent value in the area
- 15% increase in rent is permitted where the current rent is 30% to 40% less than the average rent
- A maximum of 20% increase in rent is allowed when the current rent is 40% or more less than the average rent
FAQs
Yes, as a landlord, you can increase the rent by 10% in Dubai when the current rent is 20% to 30% lower than the average rental value, obtained from the Smart Rental Index.
Yes, if the initial contract is for 1 year, landlords can increase the rent at the time of renewal.
Yes, DLD has launched an initiative, FlexiRent, giving tenants flexibility to pay rent monthly in Dubai.
As a landlord, you can increase rent in Dubai. That said, you must follow the rules and regulations. So, if you are renting out in Dubai, you must register the contract with Ejari and follow the rules to avoid any disputes.
To learn more about rental laws and regulations, keep reading DubaiRent blogs.
