Inquisition about Real Estate Rental Prices in Dubai: Does the City Impose a Ceiling on Rent Hikes?
Under Dubai's Real Estate Regulatory Agency (RERA) rules, when a lease expires and a new contract has not yet been signed, landlords can only increase the rent if they have provided the tenant with a 90-day written notice before the lease expiry, and the proposed increase must comply with the smart rental index limits based on the difference between the current rent and the average market rent [1][3][5].
Here are some key details about the rent increase process specifically after lease expiry and without a new contract signed:
- No increase is allowed during the active lease term, even if the landlord wants to raise rent; increases must happen only at or before the lease renewal stage, with proper notice [4].
- If the landlord does not give the required 90 days' written notice before the contract ends, the rent cannot be increased, and the lease typically renews automatically under the same terms [1][5].
- The amount a landlord can increase rent after lease expiry depends on how much the current rent is below the average market rent, determined by the smart rental index:
| Rent Compared to Market Average | Maximum Allowed Increase | |---------------------------------|-------------------------| | Less than 10% below average | No increase allowed | | 11% - 20% below average | Up to 5% increase | | 21% - 30% below average | Up to 10% increase | | 31% - 40% below average | Up to 15% increase | | More than 40% below average | Up to 20% increase |
- The smart rental index covers all residential areas in Dubai and standardizes rent adjustments to maintain transparency and fairness [3][5].
- Tenants and landlords can use the RERA rental increase calculator via the Dubai Land Department platform or Dubai REST app to check if a proposed rent increase complies with the regulations before lease renewal [1][5].
In summary, after the lease expires with no renewal contract signed, rent can only be raised if the landlord gave 90 days' notice before expiry and the increase follows the smart rental index scale; otherwise, the rent remains at the previous level under the same terms until both parties sign a new contract.
If your landlord is planning to sell the property, they must provide a 12-month written notice through notary public or registered mail [2]. If you suspect the notice to increase rent is a pretext to remove you for a higher-paying tenant, you can report this to the RDSC [6]. If you have proof that the owner didn't sell the property and rented it out again, you would be in your rights to seek compensation through the RDSC [7].
If you need legal advice, you can send your questions to [email protected].
- Under Dubai's Real Estate Regulatory Agency (RERA) rules, during the active lease term, no increase in rent is allowed, even if the landlord desires to do so, with any potential increase happening only at or before lease renewal, given proper notice.
- If a landlord fails to provide the required 90 days' written notice before the contract ends, the rent cannot be increased, and the lease typically renews automatically under the same terms.
- The smart rental index, covering all residential areas in Dubai, determines the amount a landlord can increase rent after lease expiry based on the difference between the current rent and the average market rent.
- Tenants and landlords can use the RERA rental increase calculator via the Dubai Land Department platform or Dubai REST app to confirm if a proposed rent increase complies with the regulations before lease renewal.
- If your landlord has provided a 12-month written notice through notary public or registered mail to sell the property, but you suspect the intended rental increase is a pretext to remove you for a higher-paying tenant, you can report this to the RDSC. If you have proof that the owner didn't sell the property and rented it out again, you would be in your rights to seek compensation through the RDSC.
