Dubai tenants receive clearer guidelines regarding rent increases, including a mandated 90-day notice
Dubai: One of the key highlights from the latest announcement by the Dubai Land Department is the enforced 90-day notice period for tenants regarding rent increases for their lease renewals.
However, additional details will also aid tenants during their negotiations with property owners.
For example, if a landlord proposes a specific rent increase, tenants should consider the following:
- Whether the proposed increase aligns with the new digital Dubai Rental Index.
- Or if the request for a rental increase is based on the previous Rental Index, which was discontinued earlier this year in favor of the new real-time rental tracker.
The renewal date of the lease will determine which index – and subsequently, which rent increase – will apply.
The Dubai Land Department has established the following guidelines:
- The previous Dubai Rental Index will apply if the contract is renewed before 2025.
- The new index will be in effect for contracts renewed in 2025.
Thus, tenants have a clearer understanding of what their potential rent might be. Some landlords may still try to impose higher increases than permitted, and in such situations, it is up to tenants to decide whether to report this to the Rental Disputes Center or look for alternative rental options.
“Many Dubai landlords are enhancing their properties with improved maintenance and smart home technologies, which will likely lead to increased rental prices,” commented Parag Parekh, owner of Property Pro Real Estate Brokerage.
Many Dubai landlords are enhancing their properties with improved maintenance and smart home technologies, which will likely lead to increased rental prices
“Rental agreements initiated in 2025 are expected to see notable increases, as numerous buildings in Dubai meet the criteria for increases based on factors like structural condition, maintenance quality, and available amenities.”
Key points for tenants to monitor
Additionally, some buildings may receive a lower rating under the new star rating system incorporated in the current Dubai Rental Index. If that is the case, tenants cannot be subjected to higher rent increases from their landlords. Should they find themselves facing such increases, they have valid grounds to approach the Rental Disputes Center.
“Older buildings, even in prime locations like Dubai Marina, with outdated amenities may not experience any rent increases,” remarked Rachna Bhatia, Managing Director at One Stop Reality. “Tenants might even see a reduction in rent depending on how the building is rated under the star system.”
Older buildings, even in prime locations like Dubai Marina, with outdated amenities may not experience any rent increases
Tenants should be sure to consult the RERA Rental Index through the Dubai Rest app to ascertain what increases are applicable to their building.
In conclusion, the confirmation of the mandatory 90-day notice, along with considerations such as the building’s star rating, should give tenants sufficient information regarding their potential rental adjustments.
Finally, it is crucial to evaluate whether the landlord’s requested increase is reasonable or justified.