Rent Increase Rules in Dubai (2026): Bands, 90-Day Notice and the Rental Index

Rent Increase Rules in Dubai: The Short Answer

Under Dubai's rent increase rules, a landlord can only raise the rent when the tenancy is renewed, must give the tenant at least 90 days' written notice before the contract expires, and can only increase it if the current rent is more than 10% below the average market rent for similar properties shown in the official Dubai Land Department (DLD) rental index. The maximum increase depends on how far below the index the current rent is, from 5% up to a cap of 20%. If the current rent is within 10% of the index average, no increase is allowed at all.

This guide explains the rent increase bands, how to check the index, the notice rules, what tenants and landlords can do in a dispute, and how eviction rules interact with rent increases. It is based on Dubai Law No. 26 of 2007 on landlord and tenant relationships, as amended by Law No. 33 of 2008, and Decree No. 43 of 2013 on rent increases, checked as of October 2026. Always run the official calculator for your own property before agreeing to, or proposing, a new rent.

The Dubai Rent Increase Bands

Decree No. 43 of 2013 links the maximum increase to the gap between the current rent and the average rent for similar properties in the index:

Current rent compared with the index average	Maximum increase allowed
Up to 10% below the average	No increase
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

The rules work in one direction only: they cap increases, but they do not force a landlord to raise the rent, and a landlord and tenant can always agree a lower figure.

A Worked Example

Suppose a tenant pays AED 80,000 a year for a one-bedroom apartment, and the rental index shows an average of AED 100,000 for similar units in the same area.

• The current rent is 20% below the average (AED 80,000 is AED 20,000 less than AED 100,000).
• That falls in the 11% to 20% band, so the maximum increase is 5%.
• The highest new rent the landlord can ask for at renewal is AED 84,000.

If the same tenant were paying AED 92,000, only 8% below the average, the landlord could not increase the rent at all at renewal.

How to Check the Rental Index

The DLD publishes an official rental index and calculator through its website and the Dubai REST app. The DLD introduced its updated Smart Rental Index in 2025, which takes into account factors such as the building's classification as well as the area and unit type. To use it:

1. Open the rental index calculator on the DLD website or in the Dubai REST app.
2. Enter the property details, such as the area, building, property type and number of bedrooms.
3. Enter the current annual rent and the contract expiry date.
4. Read the result, which shows the average rent and the maximum increase allowed.

Save a copy or screenshot of the result. It is the main evidence if the landlord and tenant disagree.

The 90-Day Notice Rule

A landlord who wants to change any terms of the tenancy at renewal, including the rent, must notify the tenant at least 90 days before the contract ends. Without proper notice, the tenancy generally renews on the same terms. Landlords should send notice in a way they can prove, such as by registered email or through the tenancy contract's notice address. Tenants who receive late notice can usually insist on renewing at the existing rent.

Rent Increase Rules for Landlords

• Check the index before you send notice, so the proposed increase is within the allowed band.
• Send notice at least 90 days before expiry, clearly stating the new rent.
• Do not raise rent mid-contract. Increases apply only at renewal.
• Register the renewed contract with Ejari so it is enforceable.
• Consider the full picture. A modest increase that keeps a reliable tenant can beat a vacancy. Our guide to property management fees covers the cost of finding new tenants.

Rent Increase Rules for Tenants

• Run the calculator yourself when you receive a renewal notice.
• Check the notice date. Fewer than 90 days usually means the old terms continue.
• Negotiate with evidence, using the calculator result and comparable listings.
• Keep paying the current rent while a disagreement is being resolved, and keep records of payments.

Moving instead? Our guide to the cheapest way to rent in Dubai lists every upfront cost of a new tenancy.

What Happens If Landlord and Tenant Disagree?

Most disagreements are settled once both sides look at the index result. If not, either party can file a case with the Rental Dispute Settlement Centre (RDSC) in Dubai. The centre charges a filing fee based on a percentage of the annual rent, and it encourages amicable settlement before a judgment. Bring the tenancy contract, the Ejari certificate, the notice and the calculator result.

Can a Landlord Increase Rent Mid-Contract?

No. The rent agreed in a registered tenancy contract applies for the full term. An increase can only take effect when the contract is renewed, and only within the limits of the index and with proper notice. A clause that tries to allow increases during the term is unlikely to be enforceable against the tenant. If you are signing a new lease, read the renewal clause carefully, because it sets out how notice will be given.

Rent Increases and Eviction

A landlord cannot use eviction to get around the rent cap. At the end of a contract, eviction is allowed only for specific reasons, such as the owner or a first-degree relative moving in, selling the property, or major renovation or demolition, and the landlord must give 12 months' notice through a notary public or registered mail. If an owner evicts a tenant to move in and then rents the unit to someone else within the set period, the tenant may be entitled to compensation.

Rent Increases and Your Rental Yield

For investors, the cap means rental income on an existing tenancy can lag behind the market in a rising market. When you assess a purchase, look at the current tenancy rent rather than the advertised market rent, and check how far below the index it sits. Our Dubai Rental Yield Index shows current median rents and yields by area, and our guide to service charges explains the main running cost that comes out of that rent.

Key Takeaways

• Rent can only be increased at renewal, with at least 90 days' written notice.
• No increase is allowed if the rent is within 10% of the DLD index average.
• Allowed increases range from 5% to a maximum of 20%, depending on the gap to the index.
• Use the DLD rental index calculator and keep a copy of the result.
• Disputes go to the Rental Dispute Settlement Centre, and eviction needs 12 months' notice for a valid reason.

Talk to SMS Realty

SMS Realty helps landlords price renewals correctly and helps investors understand the real rental income on a property before they buy. See our services or talk to an advisor.