Rental Increase Rules in Dubai and the RERA Rental Increase Calculator (2026)

Few questions come up more often for tenants and landlords than how much rent can legally rise at renewal. In Dubai the answer is not left to negotiation alone. It is fixed by law through Decree No. 43 of 2013, measured against the official RERA rental index, and now sharpened by the Dubai Smart Rental Index that the Dubai Land Department rolled out on 1 January 2025. This guide explains the rental increase rules, how the RERA rental increase calculator works, and the exact steps to check whether a proposed increase is legal.

How Much Can a Landlord Increase Rent in Dubai

Rent increases in Dubai follow a five-tier cap set by Decree No. 43 of 2013. The percentage a landlord may add depends entirely on how far the current rent sits below the average market rent for a similar unit in the same area. If your rent is no more than 10 percent below the market average, no increase is permitted at all. If it is 11 to 20 percent below market, the maximum increase is 5 percent. A gap of 21 to 30 percent allows up to 10 percent, a gap of 31 to 40 percent allows up to 15 percent, and where the rent is more than 40 percent below the market average, the highest permitted increase is 20 percent.

These figures are ceilings, not entitlements. A landlord cannot raise rent simply because a year has passed. If the existing rent already tracks the market, the lawful increase is zero, regardless of how much values have moved elsewhere in the emirate.

What the RERA Rental Index Measures

The caps only work because there is an agreed benchmark for market rent, and that benchmark is the RERA rental index maintained by the Dubai Land Department. The index records average rents for each community and unit type, drawn from the hundreds of thousands of tenancy contracts registered through Ejari every year. In 2024 the number of registered rental contracts in Dubai exceeded 900,000, an increase of about 8 percent, giving the index a deep and continuously refreshed pool of real transactions to draw on.

Because the cap is calculated against this index rather than against a landlord's own asking figure, the market average is the single most important number in any renewal conversation. Establish it accurately and the permitted increase follows automatically.

The Dubai Smart Rental Index and Building Classification

The most significant recent change is the Dubai Smart Rental Index, introduced by the Dubai Land Department from 1 January 2025. The earlier index grouped properties largely by area and unit type. The Smart Rental Index adds an artificial-intelligence-driven building classification that rates each residential building on a one-to-five-star scale.

That star rating reflects the building's technical and structural characteristics, the quality of its finishes and maintenance, its location and spatial value, and the services it offers such as parking, cleanliness and management. A five-star building with professional management and premium finishes is benchmarked against a higher market rent than a one-star building with minimal amenities on the same street. The practical effect is that two apartments in the same neighbourhood can now carry meaningfully different index values, and a renewal is measured against the classification that fits the specific building rather than a broad area average.

How the RERA Rental Increase Calculator Works

The RERA rental increase calculator is the free official tool that applies all of the above in one step. It is available through the Dubai REST app and the Dubai Land Department website at dubailand.gov.ae. You enter the property location and community, the type and size of the unit, and your current annual rent. The calculator compares that rent to the indexed market average for your building and unit type and returns the maximum percentage increase the law allows, along with the resulting figure in dirhams.

A worked example makes the tiers concrete. If the indexed average rent for a two-bedroom apartment in your area is AED 80,000 and you currently pay AED 60,000, your rent is 25 percent below market. That places you in the 21-to-30-percent band, so the landlord may raise the rent by up to 10 percent, or AED 6,000, taking the new rent to a maximum of AED 66,000. All figures here are indicative market averages that vary by unit, floor and view, and the calculator's own output should always be treated as the governing number.

The 90-Day Notice Rule

Even a fully compliant increase cannot be imposed without proper notice. Under Article 14 of Law No. 26 of 2007, as amended by Law No. 33 of 2008, a landlord who wants to change any condition of the tenancy, including the rent, must notify the tenant in writing at least 90 days before the contract expiry date, unless both parties agree otherwise. Miss that window and the existing terms roll over for another year at the same rent.

The notice should be delivered in a way that can be proven later, such as registered mail or a documented electronic notice, and the proposed figure must fall within what the RERA calculator permits. A notice that demands more than the index allows is not enforceable, and a tenant is within their rights to renew at the lawful figure instead.

Ejari and Why Registration Matters

None of these protections operate in a vacuum. A tenancy must be registered through Ejari, the Dubai Land Department's official contract registration system, for the relationship to be formally recognised. Registration links the contract to the rental index, is required for a valid dispute filing, and is generally needed for residency and utility connections. An unregistered arrangement leaves both sides on weaker ground if a disagreement over an increase escalates.

What to Do If a Rent Increase Is Unfair

Where a landlord insists on an increase above the legal cap, or serves late notice, the tenant can escalate to the Rental Disputes Center, the judicial body established under Decree No. 26 of 2013 to hear tenancy matters in Dubai. A case is filed with a registered Ejari contract and supporting documents, and the standard filing fee is 3.5 percent of the annual rent, subject to a minimum of AED 500 and a maximum of AED 20,000, with modest additional administrative charges. The centre rules on the basis of the same RERA index that governs the calculator, so a claim supported by the official figures stands on firm ground.

How to Read the Rules Before Your Renewal

The system is designed to make rent increases predictable. Landlords benefit from a clear, defensible basis for any rise, and tenants gain certainty that increases are tied to real market data rather than sentiment. The disciplined approach for both sides is the same: check the RERA rental increase calculator on the Dubai REST app before any renewal conversation, confirm the building classification under the Smart Rental Index, respect the 90-day notice requirement, and keep the Ejari registration current.

Talk to Al Dar Aljadeed Real Estate

If you would like help interpreting your building's classification, running the numbers on a renewal, or deciding whether to challenge a proposed increase, the team at Al Dar Aljadeed Real Estate can guide you through the process. Reach out to us for tailored support with renewals, tenancy matters and property decisions across Dubai and Abu Dhabi. This article is general information and not personalised legal or financial advice.