The maximum a landlord in Dubai can increase your rent is 20%, and that only applies when your current rent is more than 40% below the average for comparable properties in your area. If your rent is within 10% of that average, the permitted increase is zero. Between those points the cap rises in steps of 5%. Separately, a landlord who wants to increase the rent must tell you at least 90 days before your contract expires, unless your contract sets a different period. Miss that deadline and the contract renews on the existing terms.

MAX Legal Consultancy advises tenants and landlords in Dubai on rent increases, renewals and the disputes that follow them. If you have received an increase you believe is above the limit, our rental dispute service explains how we can help.

How Much Can a Landlord Increase Rent in Dubai?

The cap comes from Decree No. 43 of 2013 and depends on one figure: how far your current rent sits below the average rent for a similar property in the same area.

• Up to 10% below the average: no increase permitted.

• 11% to 20% below: up to 5% of your current rent.

• 21% to 30% below: up to 10%.

• 31% to 40% below: up to 15%.

• More than 40% below: up to 20%.

Note what the percentage applies to. A 20% cap means 20% of what you currently pay, not 20% of the market average. And nothing in the Decree permits an increase because the landlord's service charges, mortgage or costs have gone up. If your rent already matches the market, the permitted increase is nil.

How to Check the Figure Yourself

The comparison is made against the Dubai Land Department's rental index, not against what similar units are advertised at on listing portals. Since 2 January 2025 the DLD has applied a Smart Rental Index for residential property, which classifies buildings by their technical characteristics, finish quality, location and amenities rather than valuing every unit in an area the same way. So two buildings on the same street can carry different averages, and an older building with weaker maintenance may be assessed below a newer one nearby.

You can check the index through the Rental Index service on the Dubai Land Department website or the Dubai REST app. Do that before you respond to any proposed increase. An increase that sounds reasonable can still be above the cap, and one that sounds outrageous is occasionally within it.

Can a Landlord Increase the Rent Every Year?

Yes, in principle, provided each increase is within the cap for that renewal and the 90 days' notice is given. There is no rule limiting increases to every second year. The old provision that rent could not be increased for two years was removed in 2008 and no longer applies, though it still circulates. In practice a rent that has been increased to the market level cannot be increased again the following year, because the gap the cap depends on has closed.

Can a Landlord Increase the Rent After the First Year?

Yes, on the same basis. The first renewal is treated no differently. What matters is the gap between your rent and the index average at that renewal, and whether notice was given 90 days before expiry.

The 90-Day Notice Is Where Most Disputes Are Won

Either party can propose changing the rent, or any other term, when the contract is renewed. But the party proposing the change must notify the other at least 90 days before the contract expires, unless the parties agreed otherwise (Articles 13 and 14 of Law No. 26 of 2007, as amended by Law No. 33 of 2008).

This catches out a great many landlords. An increase raised six weeks before expiry, or first mentioned on a renewal invoice, does not meet the requirement, and the contract renews on the existing terms. Before arguing about market values, check the date on the notice, because if the notice was late the valuation question never arises.

What to Do If the Increase Is Above the Limit

• Check the index for your property, and keep a copy of what it shows.

• Reply in writing before the contract expires, stating what you accept and what you do not. Keep proof of delivery.

• Keep paying your existing rent. Withholding it turns a rent dispute into an arrears case and gives the landlord a separate ground to act on.

• Do not sign a renewal at the higher figure while you are disputing it.

• If you cannot agree, the Rental Disputes Center can determine a fair rent.

When a Rent Increase Turns Into a Notice to Vacate

A landlord who cannot lawfully raise the rent as far as they want sometimes serves a notice to vacate instead. Those have their own requirements: recovering a property for sale, demolition, reconstruction or the owner's personal use needs 12 months' notice served through a notary public or by registered mail, and the grounds have to be made out. A notice to vacate is not a way around the rent cap. Our guide to eviction grounds and notice rules explains what a landlord has to establish.

If You Are the Landlord

The same rules protect you when they are followed. Serve the notice more than 90 days before expiry, in writing, with proof of delivery. Check the index before setting the figure, so the increase is defensible if it is challenged. And keep the tenancy registration current throughout. Most landlord losses in rent cases are procedural rather than substantive: the increase was justifiable, but the notice was late or could not be proved.

Commercial Premises Are Assessed Differently

If this concerns a shop, office or warehouse, the Decree No. 43 bands still apply, but the comparison is made against the relevant commercial category rather than the residential Smart Rental Index. We cover that separately in our article on commercial rent increases in Dubai.

How We Help

We check whether the proposed increase is within the Decree No. 43 limits for your property, whether the notice was valid and served in time, and what your position is if it was not. Where the increase is excessive or the notice defective, setting that out to the landlord in writing usually resolves it. Where it does not, we prepare and run the case at the Rental Disputes Center.

Speak to MAX Legal Consultancy before you sign a renewal you are unhappy with. See our rental dispute lawyer in Dubai page, our real estate legal services for other property matters, or our guide to Dubai rental disputes for the full tenancy framework.

This article is general information about Dubai tenancy law, based on the legislation in force when it was written. It is not legal advice for your specific situation. Official English translations of Dubai legislation state that the Arabic text prevails in case of conflict.