By Adv.Bilal Shamsudeen, Legal Consultant
With rents continuing to rise in Dubai, many tenants find themselves under pressure during renewal season. However, it’s important to know that the law offers protection against unfair rent increases. One of the key tools tenants can rely on is the Dubai Rental Index, developed by the Real Estate Regulatory Agency (RERA) under the Dubai Land Department (DLD). This index sets a benchmark for fair rental values in various areas of Dubai and helps prevent landlords from arbitrarily raising rents beyond what’s allowed.
What is the law?
The main law governing this system is Decree No. 43 of 2013, issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum. This Decree clearly sets out the rules for how much a landlord can increase rent, but only if certain conditions are met.
If your current rent is less than 10% below the average market rent, the landlord is not allowed to increase it. If your rent is 11% to 20% below the market average, the landlord can increase it by up to 5%. The allowed increase goes up to 10%, 15%, or a maximum of 20%, depending on how much lower your rent is compared to the average. This rule ensures that any rent increase is based on clear and fair benchmarks and helps prevent landlords from taking advantage of tenants.
As per the new rule effective from April 1, 2024, all landlords are required to obtain a legal order or judgment before requesting a rent revaluation if they believe the new Rental Index undervalues their property. This applies to all rent revaluation requests made from April 2024 onwards. Landlords must first file a case with the Rent Disputes Settlement Centre (RDC) to secure the required legal order. This process ensures a fair and transparent system and serves as an added safeguard to protect tenants from unjustified rent increases.
In addition, Law No. 26 of 2007, as amended by Law No. 33 of 2008, governs the general relationship between landlords and tenants. One important part of this law is:
Article 14: Landlords must give tenants at least 90 days’ written notice before any proposed rent increase.
How to Use the Dubai Rental Index.
During tenancy renewals, tenants can easily check their rental status using the Dubai Land Department’s online Rental Index. By entering basic property details such as the location, type of property, and current rent, the system will generate a report indicating whether a rent increase is legally allowed.
If the current rent falls within the fair market range, then no increase is permitted. If it is below the market average, the report will clearly state the maximum percentage by which the landlord can legally increase the rent.
It is highly recommended to download and keep the Rental Index PDF report as legal evidence, especially in case of any future disputes with the landlord over rental adjustments.
Responding to Rent Disputes.
If a landlord intentionally imposes an unlawful rent increase or charges arbitrary administrative fees, tenants have the right to file a complaint with the Rental Dispute Settlement Centre (RDC). The RDSC is a judicial body under the Dubai Land Department (DLD), dedicated to resolving rental-related disputes.
Common issues brought before the RDSC include:
• Unlawful rent increases
• Failure to comply with the required notice period
• Unjustified or unexplained service charges
• Disagreements over renewal terms
Proceedings at the RDSC are generally efficient and resolution-focused, especially when tenants provide proper documentation such as a copy of the Rental Index report to support their case.
Conclusion.
The Dubai Rental Index is not just a reference tool yet a legally enforceable instrument designed to protect tenants from unjustified rent increases. By understanding and applying the relevant provisions under Decree No. 43 of 2013 and Law No. 26 of 2007, tenants can confidently review rental renewal terms, assert their rights, and avoid unnecessary financial strain.
As legal consultants, we strongly advise all tenants to verify their rental benchmarks before renewing any lease and to take immediate action through the Rental Dispute Settlement Centre (RDC) if any violations occur. Being aware of these legal protections not only strengthens your position during negotiations but also promotes fairness and stability in Dubai’s evolving real estate market.
