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What is the maximum rent increase (%) allowable for a Landlord to the tenant as per Dubai law?

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Question added by Marie Angelie Padriga , Coordinator - Retail Leasing and Mall Management , Union Properties PJSC
Date Posted: 2017/02/25
Rahul Nair
by Rahul Nair , Accountant (General) , A.M. YATEEM BROS. W.L.L.

the maximum rent increase allowable for landlord to the tenant as per Dubai Law is 5 percent.

Amjad M G E Roushdy
by Amjad M G E Roushdy , Leasing & Mall Manager , Juma Al Majid Holding Group

 

Rental increases by a landlord is governed by Dubai's RERA Index which is based on Decree 43 of 2013 of the real estate law.

 

 

If the tenant is paying;

 

10% or less than the average similar rent in a given area – Landlord cannot increase rent

 

11-20% less than the average similar rent in a given area – Landlord may increase rents by up to 5%

 

21-30% less than the average similar rent in a given area – Landlord may increase rent by up to 10%

 

31-40% less than the average similar rent in a given area – Landlord may increase rent by up to 15%

 

over 40% less than the average similar rent in a given area – Landlord may increase rent by up to 20%

 

 

however, it should be noted that RERA is working on updating their rental calculators that will include a rating based system of each building based on its age, maintenance record and the type of facilities it provides to tenants.

 

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