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Posts Tagged ‘rent increases in dubai’

1step propertiesAre you thinking of moving within Dubai? A survey has been done and shows more people are moving out of town and into the suburbs
The results of an online survey of 200 Dubai residents conducted by, a comparison site for home services: 82 per cent experienced an increase in rents when they last renewed their rental contracts, even though we are told rents seem to be stabilizing. Read more

Rising-RentShaikh Mohammad issues decree on rent hike caps while renewing tenancy contracts

Future rent increases in Dubai will be decided by a weighted average of what properties in that particular area command rather than an arbitrary demand by a landlord. It applies equally to residential and commercial realty in the emirate.

This will be the natural result of a new decree issued by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. The Decree, No. 43 of 2013, sets a specific band on how the optimum rental increases that a landlord can demand while renewing leases.

The new rental slab will not allow landlords to raise rents on renewals if the current lease is only 10 per cent lower than the average rent of a similar property.

It will be applicable to private and public sector owned properties in Dubai, as well as — pertinently enough — within the free zones. The Decree thus brings the future setting of lease terms and renewals more in sync with the Dubai Rent Index brought out by the Real Estate Regulatory Agency.

  • 5 per cent if the earlier rental is 11 to 20 per cent lower than the average rent for a similar property;
  • 10 per cent if the rental is 21 to 30 per cent lower than the current going rates for properties of a similar scale;
  • 15 per cent if the rent is as low as 31 to 40 per cent than comparable ones; and
  • 20 per cent if a property’s rental is more than 40 per cent less than the average. Read more

sorry_rentedTalking to colleagues, friends, or when checking out the real-estate adds in the local media no-one can fail to notice that rents are once more on the rise. There is a law regulating rentals in Dubai, where the landlord can increase rents by a minimum of five per cent to a maximum of 20 per cent — however this is when the existing rent is below the average market rate stated in Rera’s geographic rent index. But, do landlords actually abide by this law?

Expat Echo checked with the experts at Move One Relocation and 1Step Properties who advised that in their experience landlords are ignoring it as demand is just too high.  They use the RERA Rental Calculator to work out if the landlord has the right to increase the rent but are finding that even if the rent is not 26% below the RERA Rent Index Landlords still increase rents!  Tenants do have the right to file a case against landlord with Rental Committee however this can cost a lot of money and time and most tenants end up accepting the new rent or simply move out.  Read more

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