Got a rent increase notice, but the Rera Rental Index says your apartment isn’t eligible for one? Don’t panic. If you’ve recently been thinking about how you’ve received a rent increase notice for you apartment, but after checking the Rera rental index it shows your property isn’t eligible for an increase – you are not the only one. And yes, there are legal procedures you can take to rectify this issue. Keep reading to find out all the important details you need to know if you’re in the same position.
(Please be aware that any information provided in this article is for general audience only, and is not authorised legal advice. Please consult a qualified lawyer for specific inquiries.)
How Much Can Your Rent Go Up By?
In Dubai, how much your rent can rise depends on how your rent compares to the average rent for similar properties in your area. This comes from Article 1 of Decree No. (43) of 2013, which sets the maximum increase when a rental contract is renewed:
- No increase: your rent is up to 10% less than the average for similar units
- 5% increase: your rent is 11% to 20% less than the average
- 10% increase: your rent is 21% to 30% less than the average
- 15% increase: your rent is 31% to 40% less than the average
- 20% increase: your rent is more than 40% less than the average
Where Does The “Average” Come From?
The average rental value is simply the average rent for similar properties in Dubai. It’s worked out using the Rent Index of the Emirate of Dubai, which is approved by the Real Estate Regulatory Agency (Rera). That’s set out in Article 3 of the same law. Rera also has the final say on rent increases and decreases for residential properties. Under Article 10 of Law No. 26 of 2007, Rera can set the rules on rent increase percentages to match the economic situation at the time.
Renewing Your Contract
When it’s time to renew, you and your landlord can discuss about the terms. Including the rent, and change them if you both agree. If you can’t agree, the tribunal can step in and decide what a fair rent should be, based on specific criteria. If either of you wants to change the rent terms, you must tell the other person at least 90 days before the contract ends. Unless you’ve agreed otherwise. This comes from Articles 13 and 14 of Law No. 33 of 2008, which amended Law No. 26 of 2007.
What’s The Smart Rental Index?
The Dubai Land Department (DLD) introduced the Smart Rental Index in 2025. Its job is to keep rental prices steady, keep inflation in check by regulating rent increases. As well as make the market more transparent. It gives standardised rental assessments across all residential areas.
Rent increases under the index depend on things like contract values and building classification. Landlords also have to give tenants 90 days’ notice before the contract expires for an increase to count. If the index doesn’t support the increase, or the notice wasn’t given properly, the previous index applies, depending on when your contract is renewed.
Which Index Applies To You?
Say your landlord gave the full 90 days’ notice and the previous index supported an increase, but the new one doesn’t. Your renewal date decides which index is used:
- Contract renewed before 2025: the previous index applies
- Contract renewed during 2025: the new index applies
So, What Does This Mean For You?
Your landlord can only raise your rent if the Rera index allows it. They also have to give you written notice at least 90 days before your rental period renews. If you and your landlord can’t settle things, you may need to take the dispute to the Rental Dispute Centre in Dubai.
