Rent for residential properties in Dubai has increased exponentially over the past year, with some estimates showing lease values have hiked almost 20 percent across the emirate.
Evaluating rental renewals in Dubai is not always straightforward, as proposed rent hikes sometimes leave tenants questioning their legitimacy under the applicable regulations.
Here’s how you can find out if your landlord is illegally raising your rent.
Dubai rent hike limits
RERA encourages open communication and transparency during lease renewals. Landlords can only increase rent once a year and must provide tenants with a 90-day notice beforehand. But these increases will have to adhere to established guidelines:
Rent increases are capped based on the difference between your current rent and the market value:
- If your rent is 11-20 percent below market value, the maximum increase is five percent.
- If it is 21-30 percent below, the maximum increase is 10 percent.
- Rents 31-40 percent below market value can see a maximum increase of 15 percent.
- If your rent is 40 percent or more below, the maximum increase is capped at 20 percent.
However, if your rent is already within 10 percent of the market value, your landlord is not allowed to raise it.
How to calculate the legal rent hike threshold for your Dubai home
By establishing clear regulations and providing valuable tools like the Real Estate Regulatory Authority (RERA) Rent Index, the government ensures both tenants and landlords play by the same fair rules.
RERA analyses rental price data to determine the average market rent for different property types, and landlords can increase rents upon renewal if the current rent falls below this average. The rental increase calculator asks for property details to compare your rent with comparable properties in the area and calculate the maximum allowed increase, which generally ranges from five to 10 percent annually but can reach 15 to 20 percent depending on current market rates and how much below average your rent may be, within the parameters outlined in RERA’s guidelines.
Here’s how you can use the RERA Rent Calculator, a free online tool accessible on the Dubai Land Department website, to figure out the maximum permissable rent increase:
- Head over to the RERA Rental Index
- Select your property type: Residential, commercial, industrial, or staff accommodation. Tenants should click on residential.
- Fill in the details: Contract end date, property type (apartment, villa, or unit), area, number of bedrooms, and current rent.
- Click “calculate” to see the the current rent increase guidelines for your area, comparable rental prices for your specific property type, and the maximum allowable rent increase based on established standards.
What to do if you are facing an illegal rent increase in Dubai
If your landlord proposes an increase exceeding the RERA limits you have an array of options.
- Contact the Dubai Land Department’s Rental Dispute Center: Call (800) 4488 to report the issue and seek guidance.
- Consider mediation: RERA encourages amicable settlements. The Rent Disputes Settlement Centre can facilitate communication and help you reach a fair resolution with your landlord.
- File a formal complaint: If mediation fails, you have the right to submit a RERA complaint at the Rent Disputes Settlement Centre in Deira.
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