Rental Increase Laws in Dubai — RERA Calculator Guide (2026)

Rent increases in Dubai follow a fixed formula. Decree No. 43 of 2013 — issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum — established a tiered system that caps rental increases based on how far below market rate the current rent is. The RERA Rent Index Calculator is the official tool that determines the maximum permissible increase. Landlords cannot charge more than the calculator allows, and tenants who receive demands above the cap can refuse and file with the Rental Dispute Settlement Centre (RDSC). This guide covers the exact increase percentages, how to use the RERA calculator, notice requirements, the dispute process, and when a real estate lawyer helps protect your position.

What Is the RERA Rent Index Calculator?

The RERA Rent Index Calculator is an online tool maintained by the Dubai Land Department that determines the maximum permissible rent increase for a property at renewal time. It compares the current rent to the average market rent for similar properties in the same area and applies the increase caps set by Decree No. 43 of 2013. The calculator is the single authoritative reference for rent increase disputes in Dubai.

The calculator is accessible through the Dubai REST app and the Dubai Land Department website. To use it, you input:

• Property type (apartment, villa, commercial)
• Number of bedrooms
• Area/community
• Current annual rent

The calculator outputs:

• The average market rent for comparable properties
• The percentage by which your rent is below (or above) market rate
• The maximum allowed increase percentage
• The maximum new annual rent

The RERA Rent Index is updated periodically to reflect market conditions. It draws on data from registered Ejari contracts — giving it a substantial real-world database. However, it represents averages, not specific property values. A well-maintained apartment with a sea view and an aging unit in the same building may fall under the same index rate.

What Are the Allowable Rent Increase Percentages?

Decree No. 43 of 2013 sets a tiered cap: no increase if rent is less than 10% below market average; 5% if 11-20% below; 10% if 21-30% below; 15% if 31-40% below; and 20% if more than 40% below market average. The maximum increase under any circumstance is 20% per year. Landlords cannot exceed these caps regardless of the rental contract terms.

The full tier structure:

Example calculation:

Even though the market average is AED 85,000, the landlord can only increase the rent to AED 66,000 — not jump to market rate. If the landlord wants to reach market rate, it would take multiple renewal cycles of maximum increases.

This tiered system was specifically designed to prevent rent shocks. Before the decree, landlords could — and did — impose 30-50% increases in boom markets, causing mass displacement of tenants.

Important notes:

• The caps apply to renewals only — not to new leases. When a property is vacant and a new tenant signs, the landlord can set any rent.
• The caps are per year. Even if the lease is for 2 years, the increase is calculated annually.
• The caps apply to the total rent — not just the base rent. If the landlord tries to add "maintenance fees" or "service charges" separately to circumvent the cap, this is disputable.

How Do You Use the RERA Calculator Step by Step?

Open the Dubai REST app or visit dubailand.gov.ae, select the Rental Index Calculator, enter your property type, number of rooms, area, and current annual rent. The calculator displays the market average and the maximum increase. Screenshot the result — this is your evidence if the landlord demands more than the allowed amount.

Detailed walkthrough:

Step 1 — Access the calculator.

• Dubai REST app: Home → Services → Rental Index
• Website: dubailand.gov.ae → Rental Index Calculator

Step 2 — Select property details.

Step 3 — Enter current rent. Input your current annual rent in AED. Use the Ejari-registered amount — not any side agreement.

Step 4 — Review results. The calculator shows:

• Average market rent for your property type and area
• How your rent compares (percentage below or above market)
• The applicable increase tier
• The maximum new rent

Step 5 — Save the result. Take a screenshot with the date visible. This serves as evidence if you need to dispute the landlord's demand. The RDSC accepts RERA calculator results as authoritative evidence.

Common errors when using the calculator:

What Notice Must a Landlord Give for a Rent Increase?

The landlord must notify the tenant of a proposed rent increase at least 90 days before the lease renewal date. The notice must be in writing — delivered by notary public, registered mail, or through the Dubai REST app. Verbal notices, WhatsApp messages, and emails are not legally valid. If the landlord fails to give 90 days' notice, the lease renews at the existing rent.

Notice requirements under Law No. 26 of 2007 (as amended by Law No. 33 of 2008):

What counts as valid notice:

• Notarized letter delivered in person or by court bailiff (strongest)
• Registered mail with delivery confirmation (strong)
• Dubai REST app notification (accepted, growing in use)

What does NOT count:

• WhatsApp or SMS messages
• Email (unless the lease specifically provides for email notice and both parties agreed)
• Verbal conversations
• Informal written notes slipped under the door

If the landlord provides notice but demands more than the RERA calculator allows, the tenant can:

1. Refuse the excess and agree only to the RERA-allowed increase.
2. Continue paying the current rent if the landlord does not accept.
3. File with the RDSC if the landlord insists or takes retaliatory action.

For details on the RDSC process, see our guide on landlord-tenant disputes in Dubai.

How Do You Dispute an Unlawful Rent Increase?

If the landlord demands more than the RERA calculator allows, the tenant can refuse the excess and file a complaint with the RDSC. File through the Dubai REST app or in person. Bring the RERA calculator result, your current Ejari contract, and the landlord's notice. The RDSC will apply the calculator and issue a binding ruling. Tenants cannot be evicted for refusing an unlawful increase.

The dispute process:

Step 1 — Verify the increase is unlawful. Run the RERA calculator and confirm the landlord's demand exceeds the maximum. Document the difference.

Step 2 — Notify the landlord in writing. Send a written response (registered mail or notarized) stating that the demanded increase exceeds the RERA cap, citing Decree No. 43 of 2013. Include the calculator result. This creates a record and may resolve the matter without filing.

Step 3 — Continue paying existing rent. Do not stop paying rent. Pay the current rent amount on time. If you withhold rent entirely, the landlord gains eviction grounds regardless of the increase dispute.

Step 4 — File with the RDSC (if landlord persists).

Required documents:

Step 5 — RDSC hearing and ruling. The RDSC applies the RERA calculator independently and issues a binding decision. If the landlord's increase exceeds the cap, the committee limits the increase to the permitted amount.

Filing fee: 3.5% of the annual rent in dispute (minimum AED 500, maximum AED 20,000).

Key protections for tenants during the dispute:

• The tenant retains possession throughout.
• The landlord cannot take retaliatory action (utility disconnection, lock changes, harassment).
• The lease continues on existing terms until the RDSC issues its decision.
• If the tenant wins, the landlord typically bears the filing fees.

What If You Are Paying Above Market Rate?

If the RERA calculator shows your rent is at or above market average, the landlord cannot increase the rent at all — the increase cap is 0%. The tenant is also entitled to request a rent decrease, though there is no statutory mechanism to force a decrease. In practice, tenants negotiate by referencing the RERA index and threatening to vacate if the landlord refuses a reduction.

This situation is increasingly common after market corrections:

Tenant's options when paying above market:

The asymmetry in the law is notable: tenants are protected against increases above the cap, but there is no equivalent mechanism forcing landlords to decrease rent. The market mechanism (tenant mobility) is the primary pressure.

Strategies for tenants paying above market:

1. Run the RERA calculator and document that you are above market.
2. Research comparable rental listings in your area (use Bayut, Property Finder, or Dubizzle).
3. Present the data to your landlord at least 60-90 days before renewal.
4. Offer to renew at the RERA market average — a win-win that avoids vacancy for the landlord.
5. If the landlord refuses, give your notice to vacate and find a market-rate alternative.

Do Rent Caps Apply to Commercial Properties?

Yes. Decree No. 43 of 2013 applies to both residential and commercial properties in Dubai. The RERA Rent Index covers commercial property types including offices, retail spaces, and warehouses. The same tiered percentage caps apply, and the same 90-day notice requirement governs commercial rent increases. However, commercial leases often have additional negotiated terms that can affect the practical application.

Commercial-specific considerations:

Key money (خلو):

Some commercial landlords demand "key money" — an upfront payment separate from rent and security deposit — for desirable locations. The legality of key money is disputed in Dubai. The RDSC has not definitively ruled on it, and it exists in a grey area. If a landlord demands key money in addition to an above-cap rent increase, a real estate lawyer in Dubai can advise on your options.

Fit-out and improvement protections:

Commercial tenants who invest significantly in fitting out their premises have an additional concern during rent disputes: if they are forced out, they lose their fit-out investment. While there is no specific statutory protection for fit-out costs in the context of rent increases, the RDSC may consider the tenant's investment when evaluating disputes.

For Ejari registration (required for all commercial and residential leases), and for broader real estate legal guidance, see our complete guide to real estate lawyers in UAE.

What Changes Are Expected in Dubai Rental Law?

Dubai has been gradually modernizing its rental framework. Expected developments include further digitization of the RDSC process through the Dubai REST app, potential adjustments to the tier percentages to reflect the post-2020 market recovery, expansion of the Ejari database for more accurate index calculations, and possible introduction of longer-term rental stability measures for families and long-term residents.

While no specific legislation has been announced for 2026, trends suggest:

Regardless of future changes, the current framework is well-established and heavily enforced. Tenants and landlords should plan based on existing law while monitoring DLD announcements.

For off-plan property investors who plan to rent out completed units, see our guide on off-plan property laws in UAE. For expats buying property for personal use or investment, see buying property in Dubai as an expat.

Frequently Asked Questions

Can a landlord increase rent during the lease term?

No. Rent can only be increased at the time of lease renewal — not during the contract term. If the lease is for one year, the landlord must wait until the renewal date to propose any increase. Mid-term increases are void even if the tenant agrees (unless a new Ejari is registered).

What if the RERA calculator is down or unavailable?

The DLD maintains the calculator and it is rarely offline for extended periods. If it is temporarily unavailable, you can visit a DLD service centre in person for an official calculation. The RDSC also runs the calculator independently when adjudicating disputes.

Does the 90-day notice apply if the landlord wants to decrease rent?

No. The 90-day notice requirement applies to increases and lease non-renewals. A landlord can offer a rent decrease at any time, and it takes effect upon agreement and new Ejari registration.

Can I negotiate a rent freeze instead of an increase?

Yes. The RERA calculator shows the maximum allowed increase — not the required increase. Many tenants negotiate a rent freeze or a smaller increase even when the RERA cap would allow a higher one. Good tenant history, prompt payment, and long tenancy are leverage points.

What happens if my landlord increases rent without proper notice?

The increase is void. The lease renews at the existing rent. If the landlord refuses to renew Ejari at the old rate, file with the RDSC. You continue paying the existing amount and the RDSC will order the landlord to renew at the current rate.

Keep Reading

• Landlord-Tenant Disputes in Dubai — RERA Rules
• Ejari Registration in Dubai
• Off-Plan Property Laws in UAE
• Buying Property in Dubai as an Expat
• Complete Guide to Real Estate Lawyers in UAE

Landlord raising your rent unfairly? Find a real estate lawyer on FindLawyer. Find a Real Estate Lawyer in Dubai →