Dubai's Real Estate Regulatory Agency (Rera) applies a precise formula to determine how much, if at all, a landlord can raise rent at renewal — based on comparing a unit's current rent with the average market rate for similar properties in the same area. Under this index, if a unit's rent sits within 10% of the average, the landlord cannot raise the rent at all. If the gap is between 11% and 20% below average, a maximum 5% increase is permitted; 21-30% below average allows up to 10%; 31-40% allows up to 15%; and anything more than 40% below market can justify an increase of up to 20%.
Under Decree No. 43 of 2013, landlords are legally required to give tenants at least 90 days' written notice before a lease renewal if they intend to raise the rent — without that notice, any increase has no legal standing. In 2025, the Dubai Land Department rolled out an updated "Smart Rental Index" aimed at bringing more stability to the rental market; leases renewed before 2025 continue to be assessed under the previous index.
Tenants who face an unauthorised increase, or one issued without proper notice, can take their case to Dubai's Rental Dispute Centre. Legal experts advise tenants to check any proposed increase against the official Rera index before accepting it, noting that a significant share of increases landlords attempt to impose do not actually match the formula — and are therefore legally void if challenged.