How Much Can a Landlord Increase Rent in Dubai?

Rent increases on renewal in Dubai are capped by Decree No. 43 of 2013, issued by the Government of Dubai on 18 December 2013. The decree sets the maximum permitted increase according to how far the current rent sits below the average market rental rate for that unit.

Article 1 of the decree sets out the tiers: no increase is permitted if the current rent is less than 10% below the average market rate; a 5% increase is permitted if it is 11%–20% below; 10% if it is 21%–30% below; 15% if it is 31%–40% below; and 20% if it is more than 40% below the average market rate.

Article 3 states that the average market rental rate for this calculation is set according to the Rent Index of the Emirate of Dubai, approved by the Real Estate Regulatory Agency (RERA). The decree applies to all landlords in Dubai, including special development areas and free zones such as the DIFC.