Dubai tenant guide
Dubai rent increase rules, explained
Dubai caps how much a landlord can raise your rent at renewal. Here's exactly how the cap is worked out — and when no increase is allowed at all.
Reviewed by the DubaiRentCap team · Last updated
The rule in one line
Your maximum legal increase depends on how far below the market average your current rent sits. The further below market you are, the more a landlord may add — up to a hard ceiling of 20%. This is set by Decree No. (43) of 2013, which remains the governing rule for Dubai as of 2026 — the slab structure has not changed; what updates is the rental-index average it's measured against.
The Decree 43 bands
Compare your current rent to the RERA index average for a comparable unit, then read off the cap:
- Up to 10% below market → maximum increase 0% (no increase allowed)
- 11–20% below market → maximum increase 5%
- 21–30% below market → maximum increase 10%
- 31–40% below market → maximum increase 15%
- More than 40% below market → maximum increase 20%
You can run your own numbers — including the dirham figures and the legality of a specific proposed rent — with the Rent Increase Calculator, or check where your rent sits with the Rental Index Checker.
How the market average is found
The benchmark is the RERA rental index, published since January 2025 as the DLD Smart Rental Index. It uses average rents from Ejari-registered contracts plus a building-classification system (condition, finishes, location, services), and updates continuously — so the average reflects your specific building, not just the area.
When no increase is allowed
- Your rent is within 10% of the market average.
- It's the first year of your tenancy — increases only apply from year two.
- The landlord did not give 90 days' written notice before renewal — see the 90-day notice rule.
A worked example
Say your rent is AED 80,000 and the index average for your unit is AED 95,000. You're about 16% below the average, which lands in the "11–20% below" band — so the cap is 5%. Your landlord can raise the rent to at most AED 84,000. A demand for AED 95,000 would be unenforceable.
If your landlord asks for more
A demand above the legal cap is not enforceable. Reject it in writing, keep paying the existing rent, and if needed file at the Rental Disputes Center. Your Ejari, contract and the index figure are your evidence.
Common questions
What is the maximum rent increase allowed in Dubai?
The hard ceiling is 20%, and only when your rent is more than 40% below the market average. For smaller gaps the cap is 15%, 10%, 5% or 0% — see the bands above.
Can rent be increased every year?
Only from the second year of a tenancy, never in the first lease period, and only within the Decree 43 cap. If your rent is within 10% of the market average, no increase is allowed at all.
Which law sets the rent increase cap?
Decree No. (43) of 2013, which determines the permitted increase in real-estate rent in Dubai. It works off the RERA rental index, now published as the Smart Rental Index.