A Dubai landlord cannot set a renewal increase from an asking-price screenshot or a neighbourhood average alone. Two tests matter: the landlord must give the required notice, and the Dubai Land Department Rental Index must show that the property qualifies for an increase.
The notice is normally at least 90 days before the tenancy contract expires, unless the parties agreed otherwise. The percentage cap then depends on how far the current rent sits below the official average used by the index.
Estimate the published increase band
Rent increase estimator
First obtain the average rent from the official DLD Rental Index. This tool applies the published Decree No. 43 of 2013 bands to the figures you enter.
The five increase bands
Decree No. 43 of 2013 sets the maximum increase at renewal by comparing the current rent with the average rental value for similar property:
| Current rent compared with the official average | Maximum increase |
|---|---|
| Up to 10% below the average | No increase |
| More than 10% and up to 20% below | 5% |
| More than 20% and up to 30% below | 10% |
| More than 30% and up to 40% below | 15% |
| More than 40% below | 20% |
The permitted percentage is applied to the existing rent, not used to replace the rent with the market average in one step. If the current annual rent is AED 100,000 and the permitted band is 10%, the capped renewal figure is AED 110,000, subject to valid notice and the official index result.
Why the 90-day notice matters
Article 14 of Law No. 33 of 2008 says that a party seeking to amend the tenancy terms must notify the other party at least 90 days before expiry, unless the parties agreed otherwise. DLD’s published explanation of the Smart Rental Index is direct: even if the current index says the unit qualifies for an increase, the increase does not apply when the landlord failed to give the required 90-day notice.
The contract may set a different notice arrangement, so read the signed Ejari contract as well as the statute. Keep evidence showing when and how the notice was delivered. A verbal discussion without a record is difficult to prove if the renewal later becomes disputed.
What changed with the Smart Rental Index
DLD launched the Smart Rental Index in January 2025. It covers residential areas across Dubai, including special development zones and free zones. DLD says the system considers rental contracts in the building, area averages and a building classification that reflects matters such as condition, maintenance, location, services and facilities.
That means two buildings in the same broad district may not receive the same result. An old area-only estimate, a portal listing or another unit’s rent does not replace the current official result for the property.
A renewal workflow for tenants
- Check the contract-expiry date and count back at least 90 days.
- Save the landlord’s written notice and the date it arrived.
- Run the DLD Rental Index using the requested property and contract information.
- Compare the permitted percentage with the proposed renewal rent.
- Reply in writing with the index result and a clear acceptance or counterproposal.
- If the parties cannot agree, use the Rental Disputes Center’s current procedures rather than withholding rent without advice.
A renewal workflow for landlords
Start before the 90-day point. Run the current DLD index, prepare a written proposal and state both the existing rent and the requested renewal rent. Do not describe the full market gap as the allowed increase if the decree caps the adjustment at 5%, 10%, 15% or 20%.
If the index changes between notice and renewal, use the result applicable to the renewal and obtain current guidance where the parties disagree. DLD has said that index eligibility and proper notice work together; one does not cure a failure in the other.
Rent increase is different from eviction
A rent-renewal notice is not an eviction notice. Eviction has separate legal grounds, notice forms and timelines under the tenancy legislation. A landlord who wants to sell, occupy or substantially reconstruct a property should not use a rent-increase message as a substitute for the applicable eviction procedure.
Likewise, a tenant should not treat a disputed increase as permission to stop paying. The DLD FAQ describes the Rental Disputes Center’s offer-and-deposit route for cases in which a landlord refuses to receive rent. The correct step depends on the facts and the current RDC process.
Frequently asked questions
Can the landlord raise rent to the full market average?
Not automatically. Decree No. 43 of 2013 applies percentage caps to the existing rent according to the gap shown by the official index.
Does an email count as notice?
The law requires notice, while the contract and evidence determine how the parties agreed to communicate. Keep a dated written record and obtain case-specific guidance if delivery is disputed.
Can a tenant request a rent reduction?
DLD’s FAQ says a tenant may request a reduction, subject to notifying the other party at least 90 days before expiry unless otherwise agreed. Agreement or an RDC decision may still be needed.
Which figure controls, a portal listing or the DLD result?
The DLD Rental Index is the official service used to assess the permitted renewal increase. Listings can inform negotiation but do not set the legal cap.
Official sources
- Dubai Land Department: Rental Index
- Government of Dubai: Decree No. 43 of 2013
- Dubai real estate legislation, including Law No. 33 of 2008
- DLD: Smart Rental Index eligibility and notice mechanism
- Rental Disputes Center: Frequently asked questions
This guide explains the published framework and is not a decision on a particular tenancy. Use the live DLD result and obtain advice from the Rental Disputes Center or a qualified legal professional when the facts are disputed.
