How Dubai rent increases are calculated under the rental index and Decree 43

Correct as at 24 October 2026.

A Dubai landlord cannot raise the rent on renewal by any amount they choose. The maximum increase is set by Decree No. 43 of 2013, which links it to the gap between the current rent and the average market rent for similar homes, as measured by the official rental index of the Dubai Land Department (DLD). Either side must also give at least 90 days’ notice before the tenancy contract ends if it wants to change the rent or other terms. The rules, the index and the official routes for checking or challenging an increase are set out below.

The law behind rent increases

Tenancies in Dubai are governed by Law No. 26 of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai, as amended by Law No. 33 of 2008. The DLD publishes both texts in English in its Tenancy Guide.

Under Article 13 of the amended law, landlord and tenant may review the rent before the contract expires, either upwards or downwards, and may amend other terms. If they cannot agree, the dispute tribunal can set a fair rent, taking into account the criteria in Article 9: the rent increase criteria set by the Real Estate Regulatory Agency (RERA), the economic situation in the emirate, the condition of the property and the average rent of similar properties in the same area.

The cap itself comes from Decree No. 43 of 2013 Determining the Increase in the Real-Estate Rentals in the Emirate of Dubai, issued on 18 December 2013. Article 3 says the average market rent used for the calculation is the one in the “Rent Index of the Emirate of Dubai” approved by RERA. Under Article 2, the decree covers public and private landlords across the emirate, including the special development areas and the free zones.

How much the rent can rise

Article 1 of the decree sets five bands. The further the current rent sits below the index average, the larger the increase allowed on renewal:

• Current rent no more than 10% below the average: no increase.
• 11% to 20% below: up to 5%.
• 21% to 30% below: up to 10%.
• 31% to 40% below: up to 15%.
• More than 40% below: up to 20%.

As an example, take a flat let at AED 75,000 a year in an area where the index average for a comparable unit is AED 100,000. The rent is 25 per cent below the average, which falls in the 21% to 30% band. The maximum increase is therefore 10 per cent, or AED 7,500, taking the rent to AED 82,500. If the same flat were let at AED 95,000, only 5 per cent below the average, no increase would be allowed.

The DLD’s own FAQ sums up the rule in the same way: increases depend on the difference between the current rent and the average market rent, and range from 0% to 20%.

The Smart Residential Rent Index

The DLD’s FAQ describes the Smart Residential Rent Index as a system that sets rental values using building classifications, based on each building’s technical and service features. The DLD says the index relies on artificial intelligence and data analysis, including registered rental contracts.

The FAQ also says:

• Buildings are classified on construction quality, architectural design, energy efficiency, services and location.
• An owner or landlord can ask the DLD to update a building’s classification.
• The index is updated once a year.
• It covers all residential areas of Dubai, including free zones and privately developed areas, but not the Dubai International Financial Centre.
• It currently covers residential buildings only. Commercial and industrial indices are being developed.

The DLD also says the index is a guide only for a new lease. It becomes binding when landlord and tenant disagree over the increase on a renewal.

Checking an increase

The DLD’s Rental Index service calculates the permitted increase and the average rent for an area. The user enters the contract expiry date, the property type, the region, the number of rooms and the current annual rent, and the result appears immediately. The service is available on the DLD website, the Dubai REST app and the DubaiNow app.

The DLD FAQ states that an owner may legally raise the rent only after checking the calculator for the increase allowed in that area.

The 90-day notice rule

Article 14 of the amended law requires a landlord or tenant who wants to change any term of the contract on renewal, including the rent, to notify the other party no less than ninety (90) days before the contract expires, unless both have agreed otherwise.

The rule works both ways. The DLD FAQ notes that a tenant can ask for a lower rent on the same 90-day basis, and confirms that an owner can increase the rent on renewal in line with the rental index after giving the tenant three months’ notice.

A longer notice period applies when a landlord wants the property back when the contract ends. Under Article 25 of the amended law, eviction on expiry is limited to four cases: demolition and rebuilding, restoration or major maintenance that cannot be done with the tenant in place, the owner’s own use or use by a first-degree relative, and sale of the property. In those cases the landlord must give the tenant the reasons twelve (12) months before the eviction date, by notary public or registered post.

Ejari registration

Ejari is the online system for registering tenancy contracts in Dubai. The DLD Tenancy Guide says it was developed by RERA under Law No. 26 of 2007, as amended by Law No. 33 of 2008, and that registration of tenancy contracts through Ejari is mandatory.

Registration has practical effects. According to the DLD FAQ, Ejari is required for the DEWA move-in service, and a renewal cannot be registered if the contracts for earlier years were never registered: those must be registered first. The rental increase calculator also draws on Ejari contract data. An Ejari contract can run from less than a year up to 10 years.

For scale, DLD data reported by WAM on 19 April 2026 showed 118,385 new rental contracts and 135,607 renewals in the first quarter of 2026, and the total value of rental contracts in the quarter reached AED 32.2 billion.

When landlord and tenant disagree

Disputes go to the Rental Disputes Center (RDC), set up under Decree No. 26 of 2013. The RDC says it has exclusive jurisdiction over rental disputes between landlords and tenants of property in the emirate, including the free zones.

Before a claim reaches the RDC’s First Instance Committees, its Conciliation Department reviews it and tries to settle the matter between the parties. If no agreement is reached on a renewal rent, the DLD FAQ says the committee sets the rent using RERA’s increase criteria, the economic situation in the emirate, the condition of the property and rents for similar properties in the same area.

RDC services are no longer offered through the DLD website. A notice on the former RDC pages of the DLD portal says all of them have moved to the RDC’s own portal at rdc.gov.ae.