By: Ahmed Adly, Founder of Al Adly & Co.
Key Takeaways
- In Dubai, a landlord cannot simply impose a rent increase based on prevailing market rents. The permitted increase is determined by the applicable rental regulations and the Dubai Land Department’s Rental Index.
- Under Decree No. (43) of 2013, the maximum permitted increase ranges from 0% to 20%, depending on the difference between the existing rent and the average rental value of similar properties.
- If the Rental Index indicates that no increase is permitted, a landlord should not impose an increase beyond the amount permitted by the applicable regulatory framework.
- A landlord seeking to amend the rent or other terms of the tenancy must generally provide the tenant with at least 90 days’ notice before the expiry of the tenancy contract, unless the parties have agreed otherwise.
- Tenants who receive a rent increase that appears inconsistent with the Rental Index should first communicate with the landlord or property management company and retain documentary evidence.
- Where the parties cannot resolve the dispute amicably, the tenant may seek relief through Dubai’s Rental Dispute Centre (RDC).
Background
Dubai’s rental market has experienced significant changes in recent years, with rental values increasing across many areas of the Emirate. However, the ability of a landlord to increase rent at renewal is not determined solely by market demand or by the rent being charged for comparable properties.
Dubai has established a regulatory framework governing rent increase. Under Decree No. (43) of 2013 Determining Rent Increase for Real Property in the Emirate of Dubai, the permitted increase is linked to the difference between the existing rent and the average rental value of similar properties.
The Dubai Land Department’s Rental Index provides tenants and landlords with a mechanism to determine the applicable rental value and permitted increase. The current Rental Index also takes into account factors relating to the property, including its location, classification and services.
This raises an important practical question: what happens when a landlord requests a rent increase, but the Rental Index indicates that no increase is permitted?
What Does the Rental Index Actually Mean?
The Rental Index is an important reference point when determining whether a rent increase may be applied at the time of renewal.
Under Article 1 of Decree No. (43) of 2013, the maximum rent increase is determined according to the difference between the current rent and the average rental value of similar properties:
- 0% increase where the existing rent is up to 10% below the average rental value;
- 5% increase where the existing rent is 11% to 20% below the average;
- 10% increase where the existing rent is 21% to 30% below the average;
- 15% increase where the existing rent is 31% to 40% below the average; and
- 20% increase where the existing rent is more than 40% below the average.
Accordingly, where the applicable Rental Index indicates 0%, this means that the regulatory calculation does not support an increase in the rent for the relevant renewal.
The Dubai Land Department itself confirms that rent increases are calculated according to the difference between the current rental value and the average market rent for comparable properties, with permitted increases ranging from 0% to 20%.
What If the Landlord Still Demands an Increase?
If a tenant receives a rent increase notice despite the Rental Index showing that no increase is permitted, the tenant should not simply assume that the landlord's demand is legally binding.
The first step should be to verify the Rental Index calculation using the correct property and tenancy information. The Dubai Land Department's Rental Index allows users to calculate the rental increase by entering information including the contract expiry date, property type, area and current annual rent.
The tenant should then:
1. Obtain and retain the Rental Index result
The tenant should keep a copy or screenshot of the Rental Index result showing that the permitted increase is 0%.
This can become important documentary evidence if the matter later develops into a formal rental dispute.
2. Check the timing of the landlord's notice
Notice is also an important consideration.
Under Article 14 of Law No. (26) of 2007, as amended, where either party wishes to amend the terms of the tenancy contract or does not wish to renew, the other party should generally be notified at least 90 days before the contract expiry, unless otherwise agreed by the parties.
The Dubai Land Department similarly confirms that a landlord seeking to increase rent must provide prior notice of three months.
Therefore, tenants should consider both the amount of the proposed increase and whether the required notice was provided within the applicable timeframe.
3. Respond to the landlord in writing
If the proposed increase does not correspond with the Rental Index, the tenant should raise the issue with the landlord or property management company in writing.
The communication should clearly state that:
- the Rental Index has been checked;
- the applicable result indicates that no increase is permitted; and
- the tenant requests confirmation that the tenancy will be renewed in accordance with the applicable legal and regulatory requirements.
Keeping communications in writing helps establish a clear record of the dispute and the parties' respective positions.
4. Continue complying with the existing tenancy obligations
A rent dispute does not remove the tenant's other obligations under the tenancy contract.
Tenants should continue to comply with their contractual obligations, including paying rent in accordance with the applicable tenancy terms, while seeking to resolve the disagreement over the proposed increase.
5. Consider the Rental Dispute Centre if the matter remains unresolved
If the landlord continues to insist on an increase that the tenant believes is inconsistent with the applicable Rental Index or tenancy regulations, and the parties cannot reach an agreement, the tenant may consider filing a dispute before Dubai's Rental Dispute Centre (RDC).
The Dubai Land Department identifies the RDC as the forum for resolving rental disputes between landlords and tenants in Dubai.
Tenants should maintain relevant documentation, including the Ejari/tenancy contract, Rental Index result, rent increase notice, correspondence with the landlord or property manager, and evidence of rent payments.
Is the Rental Index the Only Consideration?
The Rental Index is a central consideration in determining the permitted rent increase, but tenants should avoid treating a single calculation as the entirety of the legal analysis.
The circumstances of the tenancy, the date and manner of notice, the terms of the existing contract and any subsequent agreement between the parties may also be relevant.
For example, the law provides that the parties may review the rent when renewing the tenancy, and where the parties cannot reach an agreement, the Rental Dispute Centre may determine the appropriate outcome in accordance with the applicable legal framework.
Accordingly, where a disagreement arises, the question is not simply whether the market rent has increased. The relevant question is whether the proposed contractual change complies with the applicable Dubai tenancy laws and the permitted rental increase determined through the regulatory framework.
Practical Checklist for Tenants
If your landlord has requested a rent increase, consider the following:
Before accepting the increase:
- Check the Dubai Land Department Rental Index.
- Confirm that the property details and current rent entered into the calculation are correct.
- Save the Rental Index result.
- Check when the landlord notified you of the proposed increase.
- Review your existing tenancy contract and Ejari.
- Communicate any disagreement in writing.
- Keep records of all correspondence and payments.
- If the dispute cannot be resolved, consider approaching the Rental Dispute Centre.
Al Adly & Co. Perspective
Dubai's rental regulations seek to balance the interests of landlords and tenants while maintaining transparency and predictability in the rental market.
For tenants, receiving a rent increase notice does not necessarily mean that the proposed increase can automatically be imposed. The applicable rental regulations, the Rental Index, the timing of the notice and the terms of the tenancy contract should all be considered.
Where the Rental Index indicates 0%, tenants should carefully document the result and raise the issue with the landlord before accepting the proposed increase. If the disagreement cannot be resolved amicably, the tenant may have recourse through the applicable dispute-resolution mechanism.
For landlords, similarly, reliance solely on prevailing market rents may not be sufficient. Rent adjustments should be assessed against the applicable legal and regulatory requirements to reduce the risk of disputes at renewal.
Ultimately, both parties benefit from addressing rent renewals transparently and in accordance with Dubai's established tenancy framework.
Frequently Asked Questions
Generally, where the applicable Rental Index indicates that no increase is permitted, the landlord should not impose an increase exceeding the amount permitted under the applicable regulatory framework. The specific circumstances of the tenancy should nevertheless be reviewed before reaching a final legal conclusion.
Generally, the landlord must provide the tenant with at least 90 days' notice before the expiry of the tenancy contract where an amendment to the tenancy terms, including a rent increase, is proposed, unless the parties have agreed otherwise.
The timing of the notice may affect whether the proposed amendment can be applied at renewal. Tenants should retain evidence showing when the notice was received and seek appropriate advice if the landlord insists on implementing the increase.
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Rental disputes in Dubai are handled through the Rental Dispute Centre (RDC). The Dubai Land Department confirms that tenants facing unresolved rental disputes may approach the RDC and should retain relevant tenancy and supporting documents.
The Dubai Land Department states that the Rental Index covers residential areas across Dubai, including free zones and privately developed areas, subject to the applicable exclusions.
Conclusion
A rent increase request should not be viewed in isolation from Dubai's rental regulatory framework. Where the Rental Index indicates that no rent increase is permitted, tenants should verify the result, review the timing of the landlord's notice and communicate their position in writing.
If the parties cannot reach an agreement, the dispute may ultimately be referred to the appropriate rental dispute forum.
Understanding the applicable rules before signing a renewed tenancy contract can help tenants protect their contractual position while allowing landlords to manage renewals in accordance with Dubai's legal framework.
Disclaimer: This article is prepared by Al Adly & Co. for general informational and client advisory purposes only. It does not constitute legal advice and does not create a lawyer-client relationship. Information is based on the UAE Cabinet resolution announced by WAM on 18 June 2026. The regulatory position may be supplemented by implementing regulations, ministerial guidance, or platform-specific directives. For advice specific to your platform, business, or circumstances, please contact our team directly. © 2026 Al Adly & Co. Law Firm. All rights reserved. | www.aladly.co
Ahmed Adly
Founder & Managing Partner
Ahmed Adly is the founder and managing partner of Al Adly & Co, advising international businesses and entrepreneurs operating in the UAE and Egypt. With more than 20 years of legal experience and a background in senior government legal roles, he helps clients navigate regulatory complexity, structure transactions, and resolve high-value disputes.