How much rent can rise in Dubai is governed by Decree No. 43 of 2013 (source: Dubai Land Department). The benchmark is the RERA Rental Index, which holds the average rents. If the current rent is less than 10 percent below the market average, no increase is allowed. The permitted rate rises in steps up to 20 percent when the rent is more than 40 percent below the average.
The DLD Rental Index is available online and serves as the reference in a dispute. An increase must also be announced in good time before renewal. This keeps it clear to both sides which adjustment is allowed.
For an owner renting out a Dubai property, the rent cap sets the limit on a rent adjustment. Raising above the permitted rate risks a complaint before the Rental Dispute Committee.
How we keep letting and rent adjustments within the rules is on our property management in Dubai page.
