Dubai Rent Increase Rules: The Five Bands, the Smart Rental Index and Notice Periods
A Dubai landlord can raise the rent only at renewal, with 90 days' written notice before the lease expires, and only by the percentage Decree No. 43 of 2013 allows. The cap depends on how far your rent sits below the DLD's rental index: nothing if you are within 10% of the average, then 5%, 10%, 15% or a maximum of 20% if you pay more than 40% below it.
Key takeaways
- The five bands in Decree No. 43 of 2013 have not changed: 0%, 5%, 10%, 15% and 20%, set by the gap between your rent and the average for similar units.
- The percentage applies to your current rent, not to the market average.
- Since January 2025 the benchmark comes from the DLD's Smart Rental Index, which rates each residential building from one to five stars.
- Either side must give 90 days' written notice before expiry to change any term, including the rent.
- Eviction at the end of a lease needs 12 months' notice through a notary public or registered mail, and only for reasons the law lists.
The law behind a Dubai rent increase
Three instruments do the work. Law No. 26 of 2007, as amended by Law No. 33 of 2008, governs landlords and tenants across Dubai. Decree No. 43 of 2013, issued on 18 December 2013, sets how much the rent can rise. The DLD's rental index supplies the average against which your rent is measured. The decree applies to all properties in Dubai, free zones included, and to every landlord, government entities too.
The 2025 and 2026 changes are procedural rather than a new law. The tenancy law of 2007 remains the principal legislation; what changed is the benchmark behind the calculator.
The five bands in Decree No. 43 of 2013
| Your rent compared with the index average | Maximum increase at renewal |
|---|---|
| Up to 10% below average | 0% |
| 11% to 20% below | 5% of current rent |
| 21% to 30% below | 10% of current rent |
| 31% to 40% below | 15% of current rent |
| More than 40% below | 20% of current rent |
Two points trip people up. First, the gap is measured as a share of the index average: if the average is AED 100,000 and you pay AED 80,000, you are 20% below. Second, the permitted percentage applies to what you pay now. A 5% rise on AED 80,000 is AED 4,000, not 5% of the average.
If your rent already equals or beats the average, the landlord has no increase available at all. The bands are ceilings. A landlord can always ask for less, and many do when a building has vacancies.
From rental index to Smart Rental Index
On 2 January 2025 the Dubai Land Department launched the Smart Rental Index 2025, an updated version of its rent calculator. The old tool worked off area averages. The new one classifies every residential building from one to five stars, using more than 60 criteria: structural condition, finishes and maintenance, location, and services such as cleaning, security and parking management.
The rating matters because your rent is compared with buildings of the same class. Guides describe a two-star building being measured against other two-star buildings in the area, rather than against the smart new tower next door, and a five-star building being allowed a premium over the area average. The index is live in 2026, and you can check a building's rating and average rent in the Dubai REST app or on the Dubai Land Department's rent calculator.
How to check your own renewal
- Open the Dubai Land Department's rent calculator or the Dubai REST app.
- Enter the area, building, unit type and your current annual rent.
- Read off the average rent for comparable units and the maximum increase it allows.
- Save or screenshot the result with the date. If the landlord's notice asks for more, reply in writing and attach it.
Worked examples at 2026 rents
Guides put a one-bed in Jumeirah Village Circle at roughly AED 50,000 to AED 65,000 a year in 2026, and one in Dubai Marina at roughly AED 90,000 to AED 130,000, with some sources quoting up to AED 160,000. The averages below are illustrative; your building's index figure will differ. Rupee figures use AED 1 = about Rs 26.1.
| Case | Your rent (AED) | Index average (AED) | Gap | Cap | Maximum new rent (AED) |
|---|---|---|---|---|---|
| JVC one-bed | 50,000 | 60,000 | 16.7% below | 5% | 52,500 |
| Marina one-bed | 80,000 | 110,000 | 27.3% below | 10% | 88,000 |
| Marina one-bed, near market | 100,000 | 105,000 | 4.8% below | 0% | 100,000 |
| Long-stay tenant | 60,000 | 110,000 | 45.5% below | 20% | 72,000 |
Take the second row. The gap is 30,000 divided by 110,000, which is 27.3%, so the 21% to 30% band applies. Ten percent of AED 80,000 is AED 8,000, about Rs 2.09 lakh, so the landlord can ask for up to AED 88,000. Asking for AED 95,000, closer to the market, would breach the decree even though the unit would let for more.
The last row shows why long-stay tenants can still face sharp rises. At 45.5% below average, the 20% cap adds AED 12,000 in one renewal, and the gap narrows only slowly. Our guide to the cost of renting an apartment in Dubai has fuller area numbers.
Notice rules: 90 days to renew, 12 months to evict
The 90-day notice at renewal
Article 14 of Law No. 26 of 2007, as amended, says a party that wants to change any term at renewal must tell the other in writing at least 90 days before the contract expires. That covers a landlord asking for more rent and a tenant asking for less. Miss the deadline and the lease is renewed on the same terms, rent included, unless both sides agree otherwise.
Notice must be provable. Email to the address in the contract, a courier with a receipt or a notary are all used. A WhatsApp message a month before expiry is both late and easy to dispute. Once the new rent is agreed, the renewal must be registered again; our sibling post on Ejari registration covers that step.
Eviction and the 12-month rule
A landlord who cannot raise the rent sometimes tries to end the tenancy instead. Article 25(2), as amended by Law No. 33 of 2008, allows eviction at the end of a lease only on listed grounds: the owner or a first-degree relative wants to live there and owns no other suitable home in Dubai, the owner is selling, or the building is to be demolished or substantially renovated. The notice must give 12 months and be served by notary public or registered mail. Some 2026 guides describe a longer notice for demolition; the statute says 12 months, so check with the Rental Disputes Center if your notice differs.
If the landlord takes a home back for personal use, it cannot be let to someone else for two years for residential property. And selling is no shortcut: under Article 28, a new owner takes over the existing lease on the same terms until it expires.
When the rules don't protect you
- A new lease is not a renewal. The caps govern renewals with the same tenant. A new tenant moving in pays whatever the market bears.
- The index can move against you. In a rising market the average climbs every year, so a tenant capped at 5% annually can fall into a higher band.
- Disputes cost money. The Rental Disputes Center charges 3.5% of the annual rent, with a minimum of AED 500 and a maximum of AED 20,000, and refunds half if the case settles at the conciliation stage. On AED 80,000 rent, that is AED 2,800 to file.
- Landlords lose flexibility. If you own a unit let well below market, the cap can take years to close the gap. Price the first lease carefully; our guide on renting out your property in Dubai covers setting it.
For Indian owners
If you are an Indian resident letting a Dubai flat, the rent is part of your global income and is taxable in India, even though the cap limits what you collect. Report the flat in Schedule FA each year. Our posts on tax on Dubai property for Indian buyers and tax on rental income in India explain the computation and the treaty credit.
Frequently asked questions
How much can my landlord increase the rent in Dubai?
Between 0% and 20% of your current rent, depending on how far it sits below the average in the DLD's rental index. Within 10% of the average, no increase is allowed. The cap then rises in 5-point steps, reaching 20% only when you pay more than 40% below the average for comparable units.
Can a Dubai landlord raise rent in the middle of a lease?
No. The rent in a registered tenancy contract holds for its term. A landlord can propose a change only at renewal, and must give written notice at least 90 days before the lease expires. If notice comes late, the lease renews on the existing rent unless you both agree to something else.
What is the Smart Rental Index in Dubai?
It is the Dubai Land Department's rent calculator, relaunched on 2 January 2025. It rates each residential building from one to five stars on more than 60 criteria and compares your rent with similar buildings, rather than a whole district. The permitted increase still follows the bands in Decree No. 43 of 2013.
Can my landlord evict me to rent the flat at a higher price?
Not for that reason. Eviction at the end of a lease is allowed only for personal or first-degree family use, sale, or demolition and major renovation, with 12 months' notice by notary or registered mail. After a personal-use eviction, the landlord cannot let a residential unit to someone else for two years.
What can I do if my rent increase exceeds the legal cap?
Reply in writing with a dated printout from the Dubai Land Department's rent calculator showing the permitted figure. If the landlord insists, file with the Rental Disputes Center. The fee is 3.5% of the annual rent, at least AED 500 and at most AED 20,000, with half refunded if you settle at conciliation.
If you are facing a renewal and want a second opinion on the numbers, Realty Hunting can check the index figures with you.
