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Rent Increase Dubai

Can a Tenant Be Forced to Leave a Property Due to Unfair Rent Increase?

Discover your tenant rights and navigate the impact of rental increase in Dubai.

Learn what happens when your rent goes up significantly. Our article explains the legal stuff and how landlords and tenants can find a fair deal. We’ll also talk about whether a tenant can be told to leave because of a big rent increase. Stay smart and in control with our guide to renting.

Rent Increase Dubai


Could a Tenant be Obliged to Vacate Due to an Unfair Increase in Rent?

The UAE has witnessed rapid economic growth and urban development in recent years, leading to a steep increase in demand for housing and thereby in average rentals.

Few areas in Dubai have observed an average rental increase of more than 100% in the last two years. Now in this scenario, the landlord’s priority is to adjust the rental prices to the prevailing market trends. Usually, they serve a notice to their tenant for a considerable increase in the annual rental upon renewal. However, a common question arises:

Can a tenant be compelled to vacate a property, if he/she disagrees with the landlord’s demand for an unreasonable rent increase? Understanding the legal framework surrounding rent increases is crucial for both landlords and tenants in the U.A.E.

What Law Says about Rent Increase in Dubai, UAE?

In the U.A.E. the relationship between landlords and tenants is governed by the UAE Civil Code Federal Law No. 5 of 1985, and its amendments. Decree No. (43) of 2013 determining Rent Increases for Real Property in the Emirate of Dubai strictly guidelines the maximum percentage of increase as per the slab below:

No Rent Increase Where the rent of the real property unit is up to 10% less than the average rental value of similar units;
5% Where the rent is 11% to 20% less than the average rental value of similar units.
10% Where the rent is 21% to 30% less than the average rental value of similar units.
15% Where the rent is 31% to 40% less than the average rental value of similar units.
20% Where the rent is more than 40% less than the average rental value of similar units.

Calculating Rent Increase: Dubai Rental Index by RERA

The average rental value will be determined by calculating rent increase through the “Rent Index of the Emirate of Dubai” approved by the Real Estate Regulatory Agency (RERA).

Now, there are certain other prerequisites to it, that is landlords are supposed to provide tenants sufficient notice of their intention to increase the rent which ranges from one to three months allowing tenants sufficient time to consider the increased rent. During this period tenant may negotiate the terms, and an agreement for the same can be executed.

What if the Landlord Increases your Rent in Dubai Without Sufficient Notice?

In case, the landlord fails to provide sufficient notice to the tenant, the tenant has got a right to refuse the rental increase and can adopt a legal course to get his contract renewed on the previous terms.

If the tenant disagrees with the proposed rental increase, they are not automatically obligated to vacate the property. The law encourages amicable resolution between landlords and tenants. If any agreement cannot be reached, the matter may be escalated to the relevant Rental Disputes Center (RDC) or Rental Dispute Settlement Centre.

The RDC established to deal with tenancy-related issues, provides an opportunity for both parties (Landlord and Tenant) to present their viewpoint. It is important to note that the tenants are protected by the law, and arbitrary or unjustified rental increases may be addressed.

The RDC will assess the situation and give judgment on whether the proposed increase is reasonable and within the market conditions or not.

Rent Increase Law in Dubai: Tenant Rights

Navigating rental increases in Dubai or UAE requires a thorough understanding of the legal framework and tenant rights. While landlords have the right to adjust rents to market conditions, tenants are protected by the law from arbitrary and unjustified increases.

Fast resolution and an open platform for negotiation, and communication are provided by RDC or Rent Disputes Settlement Centre to ensure a fair and equitable rental relationship. Ultimately, a well-informed approach by both landlords and tenants can contribute to a harmonious and legally compliant leasing experience in the U.A.E.

You might be interested to read more about How to Terminate Tenancy Agreements Before Expiration and The Definite Guide to Resolving Rental Disputes in Dubai.

If you have concerns about rent increases in Dubai, reach out to us. Our skilled rental dispute lawyers are ready to assist you.

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