Has your Rent increased in Dubai? Know the limits (RERA)

How much Rent can your Landlord increase in Dubai? RERA Rule!

Probably you are renting your current accommodation or you have rented your property. In both the cases, you should know that there is a limit to how much the rents can be increased. RERA(Real Estate Regulatory Authority) has clear laws and rules with regard to rent increases depending on the various regions of Dubai. RERA even has a rental increase calculator which calculates how much rent increase is possible depending on your current rent.

This rental increase calculator is backed up by the Decree No 43 of 2013: Determining Rent Increases for Real Property in the Emirate of Dubai. Below are the Articles that pertain to this  Decree.

Percentage of Increase: Article 1

When renewing real property lease contracts, the maximum percentage of rent increase for real property in the Emirate of Dubai will be as follows:
a. no rent increase, where the rent of the real property unit is up to ten percent (10%) less than the average rental value of similar units;
b. five percent (5%) of the rent of the real property unit, where the rent is eleven percent (11%) to twenty percent (20%) less than the average rental value of similar units;
c. ten percent (10%) of the rent of the real property unit, where the rent is twenty one percent (21%) to thirty percent (30%) less than the average rental value of
similar units;
d. fifteen percent (15%) of the rent of the real property unit, where the rent is thirty one percent (31%) to forty percent (40%) less than the average rental value of similar units; or
e. twenty percent (20%) of the rent of the real property unit, where the rent is more than forty percent (40%) less than the average rental value of similar units.

Scope of Application: Article 2

This Decree will apply to landlords, whether private or public entities, in the Emirate of Dubai, including those in special development zones and free zones such as Dubai International Financial Centre.

Average Rental Value: Article 3

For the purposes of application of Article (1) of this Decree, the average rental value of similar units will be determined in accordance with the “Rent Index of the Emirate of Dubai” approved by the Real Estate Regulatory Agency.

Publication and Commencement: Article 4

This Decree comes into force on the day on which it is issued, and will be published in the Official Gazette.