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Under current laws, landlords cannot increase the rental price of a leased property at the end of the contract as they wish. In fact, RERA (the Real Estate Regulatory Agency in Dubai), has established clear norms to regulate the price increase at the time of a contract renewal. For a detailed insight about the law, please consult the Decree 2, 2011.
In simple words, the 2011 decree (also called the Rental Cap Law) states that a price increase can be demanded before the expiry date of a rental contract (normally three months earlier) only if the rental price is at least 25% lower than the average market price for a similar property in the same area. Property types are based on the number of bedrooms available in the residential unit. RERA has setup an online tool, the rental increase calculator, to allow Dubai residents figure out whether a price increase is permitted under the current regulations.
All Dubai Land Department customers are invited to use this online service to see whether landlords are entitled to request a price increase concerning the leased property. This service is provided by the Division of Lease Regulation (Regulation of Real Estate Relations) at the Dubai Land Department.
RERA maintains and updates the Rental Price Index database on a regular basis (generally every four months) and collects data from a wide array of sources including:
If a landlord demands a higher rent than what’s suggested by the RERA rental price calculator, then the tenant may raise the issue with the landlord and/or file a complaint to the RERA Rent Committee (now called Dubai’s Rental Dispute Settlement Centre).