Dubai Landlords can increase rents up to 20%, new Real Estate Law declares

dubai landlords

Expats in Dubai, brace up for new wave of inflation and over hiked rents. According to a new real estate law, the landlords in Dubai can increase the rents up to 20%.

The latest real estate sector reforms override the 5 percent rental cap and set out new maximum rent increases for tenancy contracts renewals.Under a new decree issued by Dubai ruler Sheikh Mohammad Bin Rashid Al Maktoum, rent rises can now kick in when a property hits 11 percent below market value for an area. If it is between 11 percent and 20 percent lower than the average rent for a similar property, a landlord can increase the rent by five percent. The maximum increase can be 10 percent if the property falls 21 percent to 30 percent below market rates and 15 percent if the property is 31 percent to 40 percent under average rents. However, Dubai properties which are more than 40 percent below average rents for similar properties in an area could be subject to rent hikes of up to 20 percent. The average rent, which will be used as the benchmark for the rises, will be determined by the Real Estate Regulatory Agency’s rent index.

The decree applies to landlords from the public and private sectors in the emirate of Dubai, including private development areas and free zones. However, it is unclear whether the current caveat on landlords that prevents any rent increase for two years after a tenancy contract is signed will still apply.


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