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