Can Rents in Dubai Be Increased Every Year? Caps and Calculations Explained

Renting a property in Dubai can be a great way to enjoy the city's many attractions and amenities. But before signing a lease, it's important to understand the rules and regulations that govern rent increases. In this article, we'll explain the caps on rent increases, how they are calculated, and what you can do if your landlord tries to raise your rent beyond the legal limit.

In Dubai, rent increases are capped at 5% per year. This means that your landlord cannot increase your rent by more than 5% in any given year. The cap applies to all types of rental properties, including apartments, villas, and commercial spaces.

The 5% cap is calculated based on the average rental rate for similar properties in the same area. This means that if the average rental rate for similar properties in your area has increased by more than 5%, then your landlord can increase your rent accordingly. However, if the average rental rate has increased by less than 5%, then your landlord cannot increase your rent beyond the 5% cap.

It's important to note that the 5% cap applies to the total amount of rent you pay each year. This means that if your landlord tries to increase your rent by more than 5%, you can challenge it in court. The court will then decide whether or not the increase is reasonable based on the average rental rate for similar properties in the same area.

If you feel that your landlord is trying to increase your rent beyond the legal limit, you can contact the Real Estate Regulatory Agency (RERA). RERA is responsible for regulating rental agreements in Dubai and can help you resolve any disputes with your landlord.

It's also important to note that landlords are not allowed to increase rents during a fixed-term lease agreement. This means that if you have signed a lease agreement for a fixed period of time (e.g., one year), then your landlord cannot increase your rent until the end of that period.

In summary, rents in Dubai are capped at 5% per year and are calculated based on the average rental rate for similar properties in the same area. If your landlord tries to increase your rent beyond this limit, you can challenge it in court or contact RERA for assistance. Additionally, landlords are not allowed to increase rents during a fixed-term lease agreement.

— If the rent is 10 per cent less than the market value, there is no increase.

— If it is 11-20 per cent lower, the maximum increase may be up to 5 per cent.

— If it is 21-30 per cent lower, the maximum increase may be up to 10 per cent

— If it is 31-40 per cent lower, the maximum increase may be up to 15 per cent.

— If it is lower than 40 per cent or more, the maximum increase may be up to 20 per cent.