Dubai rent increase rules and how to calculate the increase

In Dubai the maximum rent increase at renewal depends on how far your current rent is below the average rent for similar units in the Dubai Land Department (DLD) rental index. The limits come from Decree No. 43 of 2013. You also need to give written notice at least 90 days before the lease expires, or the increase may not apply to that renewal.

The increase bands

Current rent compared with the index average for a similar unit:

• Up to 10% below: no increase allowed
• 11% to 20% below: up to 5%
• 21% to 30% below: up to 10%
• 31% to 40% below: up to 15%
• More than 40% below: up to 20%

How to calculate it, step by step

1. Get the index average for your unit from the DLD rental index calculator. It asks for details such as the lease expiry date, property type, area, number of rooms and current annual rent.
2. Work out how far your rent is below that average: (average minus current rent) divided by average.
3. Find the band in the table above.
4. Multiply your current rent by the allowed percentage. That is the maximum increase.

Worked examples

• Current rent AED 100,000, index average AED 130,000. Gap: 30,000 / 130,000 = 23%. That is in the 21% to 30% band, so the maximum is 10%. New rent up to AED 110,000.
• Current rent AED 120,000, index average AED 130,000. Gap: 10,000 / 130,000 = 7.7%. That is within 10%, so no increase is allowed at renewal.
• Current rent AED 60,000, index average AED 100,000. Gap: 40%. That is the 31% to 40% band, so the maximum is 15%. New rent up to AED 69,000.

Notice

Written notice of the increase should reach the tenant at least 90 days before expiry. Late notice means the increase may not apply to that renewal, and the old terms continue until the next one. Formal notices in Dubai are normally served by notary public or registered mail, which gives you proof of delivery. See the sample notice below.

[Date]
To: [Tenant full name]
Property: [Unit, building, area, Dubai]  Ejari number: [number]
Lease ends on: [date]

Dear [Tenant name],

I am the landlord of the property above. Your tenancy ends on [date]. I would like to renew it for [period] from [start date] on the same terms, with the annual rent changing from AED [current rent] to AED [new rent], an increase of [percent]%. This is within the limit permitted for your unit under the DLD rental index.

Please confirm your decision in writing by [date at least 30 days before expiry]. If I do not hear from you, I will contact you to discuss the renewal.

Yours sincerely,
[Landlord name]  [Phone]  [Email]
Served by: [notary public / registered mail]

Is there a rent freeze in Dubai?

At the time of writing, no general rent freeze applies in Dubai. The index bands above are the rule that limits increases at renewal.

If the tenant objects

Tenants can challenge an increase at the Rent Disputes Settlement Centre. Keep the index result, your notice and the proof of delivery.

How DOSH helps

DOSH tracks each lease's expiry and warns you before the 90-day window closes. It also compares your rent with live listings for your building and drafts the notice from the tenant and lease details already in your account.

Frequently asked questions