If you've received a rent increase notice in Dubai, the question that actually matters isn't what your landlord is asking for — it's whether they're legally allowed to ask for it. Dubai doesn't leave rent increases to negotiation. They're governed by a specific formula, and either side getting it wrong can be costly.
The legal basis
Rent increases in Dubai are governed by Decree No. 43 of 2013, which ties any permitted increase to how far your current rent sits below the average market rent for comparable properties in your area, as measured by RERA's Rental Index (now called the Smart Rental Index).
| Your rent vs. market average | Maximum legal increase |
|---|---|
| Up to 10% below market | 0% — no increase allowed |
| 11%–20% below market | 5% |
| 21%–30% below market | 10% |
| 31%–40% below market | 15% |
| More than 40% below market | 20% (the legal maximum) |
There is no legal mechanism for a landlord to increase rent beyond 20% in a single renewal, regardless of how far below market the current rent sits.
The 90-day notice rule
A landlord must give at least 90 days' written notice before the tenancy renewal date if they intend to raise the rent. If this notice isn't given — or isn't given in time — the increase isn't valid for that renewal cycle, and the tenant can insist on renewing at the existing rent.
The 2026 update: sub-community tracking
A change worth knowing about: the Smart Rental Index historically grouped large communities under one average, which meant a well-maintained tower and a dated one nearby were benchmarked identically. The 2026 update introduced sub-community and cluster-level tracking, alongside separate furnished vs. unfurnished bands — meaning the benchmark for your specific building is now more precise than it was before.
Common mistakes on both sides
- Tenants comparing against listing prices, not actual rents. The index is based on registered Ejari contract data — what people are actually paying — not asking prices on property portals, which typically run 10–20% higher.
- Landlords assuming a general market rise justifies an increase. Only the RERA calculator result for the specific unit type and location matters, not a broader sense that "rents are going up everywhere."
- Either side skipping the calculator entirely. Checking your specific rent against the index takes a few minutes and should be the starting point of any renewal conversation, not an afterthought.
If you disagree
Tenants who believe an increase exceeds the legal limit can raise it directly with the landlord first, and if unresolved, file a case with Dubai's Rental Dispute Centre. Having your Ejari registration in place is essential here — a dispute generally cannot be filed without it.