Decree on maximum rent hikes allowed upon tenancy renewal in Dubai

On 20 December 2013 His Highness Sheikh Mohammed bin Rashid Al Maktoum in his capacity as the Ruler of Dubai has issued Decree No. 43 of 2013 concerning the percentages of maximum property rent increase that are allowed upon the renewal of tenancy contracts in Dubai.

The Decree states that there should not be any rent increase if the rent of the property unit is less than 10 per cent of the average rent of a similar property in the same residential area. Article III of the Decree states that the average similar rental value of the property is determined by the Real Estate Regulatory Agency"s (RERA) rent index. See RERA rental index Landlords can raise rents on renewals by:
  • 5 per cent if the earlier rental is 11 to 20 per cent lower than the average rent for a similar property;
  • 10 per cent if the rental is 21 to 30 per cent lower than the current going rates for properties of a similar scale;
  • 15 per cent if the rent is as low as 31 to 40 per cent than comparable ones; and
  • 20 per cent if a property’s rental is more than 40 per cent less than the average rent.
The Decree applies to landlords from the public and private sectors in the emirate of Dubai including private development areas and free zones.

The Decree is effective from the date of issuance and shall be published in the Official Gazette.