The Dubai Real Estate Regulatory Agency decides the rent increase, decrease related to real estate properties based on a calculator that it developed and operates
Ask: Can you explain how the Dubai Rental Index works? I received a rent increase notice which I feel is unfair. What should I do next? How do I challenge it and how does it work after that?
Response: Based on your inquiries, since you reside in a rented apartment in Dubai, the provisions of Law No. 26 of 2007 regulating the relationship between landlords and tenants in the Emirate of Dubai (the ‘Dubai Leasing Law’) and those of Law No. 33 of 2008 amending Law No. 26 of 2007 regulating the relationship between landlords and tenants in the Emirate of Dubai (the ‘Dubai Amended Tenancy Law’).
The Dubai Real Estate Regulatory Agency (Rera) decides the increase and decrease of rents related to real estate properties based on a rent calculator that it developed and operates.
Article 10 of the Dubai Leasing Law states: “Rera shall have the authority to establish criteria related to the percentage of rent increase in the Emirate in accordance with the requirements of the prevailing economic situation in the Emirate.”
As per the aforementioned statutory provision, you can check the rental value of your apartment through the Rera Rent Calculator on the Dubai Land Department website.
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In case you find that the rent of a similar apartment in your residential area is not in line with what you have been offered, you can approach your landlord or real estate agent and inform them about the same.
If the landlord or estate agent disagrees, you can approach the Dubai Rental Dispute Center (RDC) and make a complaint. Based on your complaint, the RDC may subpoena your landlord and/or real estate company to decide the rent for your apartment to be paid at lease renewal. This is in accordance with Article 13 of the Dubai Amended Lease Law, which states: “For the purposes of renewing a Lease Agreement, the Owner and the Lessee may, before the expiration of the Lease Agreement, modify any of the its terms and reconsider raising or lowering the Rent. If the Landlord and the Tenant do not reach an agreement in this regard, the Court may determine the Fair Rent, taking into account the criteria provided in article 9 of this law.”
