A common question tenants ask is:
Can a landlord increase rent in Dubai after 1 year?
The answer: Yes—but only if market conditions and RERA regulations permit it. Landlords must strictly follow the Dubai rent increase rules, based on the RERA Rental Index, proper notice time, and legal requirements.

This guide explains everything you need to know about rent increases in Dubai, including permissible rent hikes, conditions under Decree No. 43 of 2013, Smart Rental Index updates (2025), and tenant rights.

Table of Contents

1. Legal Framework Governing Rent Increases in Dubai
2. Conditions for Implementing Rent Increases
3. Determining the Permissible Rent Increase (RERA Guidelines)
4. Step-by-Step Procedure for Rent Increase
5. Latest Updates: The New Smart Rental Index (2025)
6. Tenant Rights: How to Dispute Unfair Rent Increases
7. Navigate Dubai Rent Increase Rules with Mada Properties
8. Frequently Asked Questions (FAQs)

1. Legal Framework Governing Rent Increases

The rent increase law in Dubai is regulated by Decree No. 43 of 2013, which outlines how much and when a landlord can legally raise rent.

The Real Estate Regulatory Agency (RERA)—a division of the Dubai Land Department (DLD)—enforces these rules. Landlords cannot increase rent arbitrarily; they must comply with the RERA Rental Index, which determines permissible rent increase percentages based on market conditions.

To legally increase rent, all conditions must be met:

• The RERA Rental Index shows the rent is below market value.
• A 90-day written notice is issued before lease renewal.
• The increase does not exceed the maximum legal percentage set by RERA.

If a landlord fails to follow these rules, tenants can challenge the increase at the Rental Dispute Settlement Centre (RDSC).

2. Conditions for Implementing Rent Increases

Dubai enforces strict rules that landlords must follow before raising rent. These laws protect tenants from unreasonable rent hikes while allowing landlords to maintain fair market value.

Key Rule: No Rent Increase During the First 2 Years

Under Dubai law, landlords cannot increase rent during the first two years of a tenancy contract—whether residential or commercial.
This ensures tenants enjoy stability in the initial leasing period.

After Two Years, Rent Can Only Increase If:

• The RERA Rental Index indicates the rent is lower than market value.
• A 90-day notice is delivered before renewal.
• The increase remains within RERA’s legal percentage limits.

If any requirement is ignored, tenants may file a complaint with the RDSC.

3. Determining the Permissible Rent Increase (RERA Rental Index)

Dubai landlords cannot raise rent randomly. All rent adjustments must be based on the RERA Rental Index, which compares your current rent to similar properties in the same neighborhood.

Dubai Rental Increase Guidelines (RERA Rules):

These guidelines prevent landlords from imposing excessive rent hikes and ensure transparency.

Both tenants and landlords can check rent eligibility via:

• RERA Rental Index (DLD Website)
• Smart Rental Index (AI-powered, launched 2025)

4. Procedure for Rent Increase (Step-by-Step)

The rent increase process in Dubai must follow strict legal steps. If any step is skipped, the increase becomes invalid.

Step 1: Check the RERA Rental Index

The landlord must confirm that the property qualifies for a rent increase.

Step 2: Issue a 90-Day Written Notice

Accepted notice formats:

• Email (with traceable communication)
• Registered mail
• Ejari notice system

Step 3: Tenant Can Accept or Dispute

Tenants may:

• Accept the new rent
• Negotiate
• File a dispute with the RDSC

Step 4: Update Ejari

If both parties agree, the new rent must be registered in Ejari to make it legally binding.

❗ If the landlord fails to send a 90-day notice, the rent cannot be increased.

5. Recent Updates: Smart Rental Index (January 2025)

In January 2025, the Dubai Land Department introduced the Smart Rental Index, an AI-driven system designed to provide accurate, real-time rental valuations.

Key Features of the Smart Rental Index

• Real-time market analysis for more accurate data
• Property-specific valuation (size, amenities, condition)
• Star Rating System for building quality assessment
• Reduces disputes by offering transparent, data-backed rent evaluation

This update ensures more precise calculations compared to the traditional Rental Index.

6. Tenant Rights: Disputing an Unfair Rent Increase

If a rent increase seems excessive or illegal, tenants can file a case with the Rental Dispute Settlement Centre (RDSC).

You may dispute if:

• No 90-day notice was given
• Increase exceeds RERA limits
• Rent index does not justify the new amount
• Landlord fails to follow legal procedures

Tenants should submit:

• Ejari contract
• Rent payment history
• Landlord’s notice or communication
• RERA Index calculation

The RDSC will make a binding decision.

7. Navigate Dubai Rent Increase Rules with Mada Properties

Mada Properties is a trusted Dubai real estate brokerage helping tenants, landlords, and investors navigate rental regulations, including the rent increase law in Dubai.

Why Choose Mada Properties

• Expert knowledge of Dubai’s rental laws and RERA guidelines
• Personalized services for leasing, buying, or investing
• Legal compliance guidance to prevent disputes
• Market insights based on the latest Smart Rental Index data

Whether you are renting, investing, or buying, Mada Properties provides end-to-end support.

8. Frequently Asked Questions (FAQs)

1. Can a landlord increase rent in Dubai after 1 year?

Yes, but only if:

• The rent qualifies for an increase based on the RERA Rental Index
• A 90-day notice is served
• The increase stays within legal limits

If any condition is missing, the increase is invalid.

2. What if the landlord fails to provide a 90-day notice?

The rent cannot be increased.
The tenant can legally continue paying the current rent.

3. How do I dispute an unfair rent increase?

File a complaint with the Rental Dispute Settlement Centre (RDSC) and submit:

• Ejari
• Rent records
• Notice from landlord
• RERA rent index calculation

The RDSC will issue a final decision.

4. How do I check if my rent increase is legal?

Use:

• RERA Rental Index
• Smart Rental Index (2025 update)

These tools show whether your landlord is allowed to increase rent and by how much.