You own a unit in Dubai, the lease ends in a few months, and the market has moved. Can you raise the rent, and by how much? A RERA rent increase is not a number you choose. It is a capped figure, and you lose it altogether if the notice comes late.
This guide is for the owner, not the tenant. It covers the legal text, the official calculator and the 90-day rule, then shows what a RERA rent increase cap does to net yield. Where sources disagree, I quote the law and the Dubai Land Department (DLD).
Table of Contents
RERA Rent Increase: The Short Answer
A RERA rent increase in Dubai depends on two tests. First, how far your current rent is below the average for similar units in the official rent index. Second, whether you notified the tenant at least 90 days before the lease expires.
If your rent is already near the average, the cap is zero. If it is far below, the cap can reach 20%. Miss the notice date and DLD says the increase is not applied, even when the index would have allowed it.
How the RERA Rent Increase Rules Fit Together
Three pieces of Dubai law work together. Each one answers a different question.
- Law No. 26 of 2007, as amended by Law No. 33 of 2008. This is the landlord and tenant law. The amending law on the Dubai Legal Portal sets the renewal process in Articles 13 and 14.
- Decree No. 43 of 2013. This decree sets the maximum increase on renewal. It applies to landlords in Dubai, including those in special development zones and free zones such as the DIFC.
- The rent index. The decree says the average rent of similar units is set by the rent index approved by the Real Estate Regulatory Agency (RERA). DLD now runs that index as the Smart Rental Index.
Article 13 lets landlord and tenant amend any term, or reconsider the rent, before the lease expires. If they cannot agree, the Tribunal may set a fair rent using the Article 9 criteria, such as the RERA criteria for increases, the condition of the unit and rents of similar units nearby.
In other words, the RERA rent increase is a ceiling on renewal, not a right to the maximum. The tenant can still negotiate, and an unresolved dispute goes to the Tribunal.
The Brackets in Decree 43 of 2013
Article 1 of the decree is short. It ties the maximum increase to the gap between your rent and the average rent of similar units. This is the text I quote, because the sources I read describe it in different ways.
| Your rent compared with the average for similar units | Maximum increase on renewal |
|---|---|
| Up to 10% less than the average | No increase |
| 11% to 20% less | 5% of the rent |
| 21% to 30% less | 10% of the rent |
| 31% to 40% less | 15% of the rent |
| More than 40% less | 20% of the rent |
Notice what is missing. There is no bracket for rent that is above the average. If your tenant already pays more than the index says similar units cost, the decree does not give you a route to raise it further.
That matters for pricing. A landlord who set a high asking rent in a hot year may find the RERA rent increase is zero at the first renewal. My guide to the true cost of buying property in Dubai covers the purchase side of that decision.
The Rental Index and the Official Calculator
DLD announced its Smart Rental Index in January 2025. Its own description says the index is based on building classifications, using criteria such as construction quality, design, energy efficiency, services and strategic location. The index covers residential areas in Dubai, including free zones and privately developed areas, but excludes the DIFC, according to the DLD FAQ.
The DLD announcement of February 2025 says the index works from three inputs: rental contract values in the building, average rental values in the area, and the building classification.
Using the rent increase calculator for Dubai
The Rental Index service is the official rent increase calculator for Dubai. DLD lists the website (Ejari system), the Dubai REST app and the DubaiNow app as channels. The steps are short:
- Open the service and enter the expiry date of the tenancy contract.
- Enter the property type, the area and the number of rooms.
- Enter the current annual rent.
- Read the permitted increase and the average rent that the tool returns.
The 90-Day Notice Rule
Article 14 of the amended law reads, in the official English text: unless otherwise agreed by the parties, a party who wants to amend any term under Article 13 must notify the other party no less than ninety (90) days before the date the lease expires.
DLD has turned that into a clear rule for the RERA rent increase. If the landlord notifies the tenant at least 90 days before expiry, the increase applies only if the index confirms the unit is eligible. If the index shows eligibility but notice came late, the increase is not applied.
Count the days from the expiry date
The law counts back from the expiry date. A lease ending on 31 December needs notice no later than 2 October, so build in a buffer.
The article says “notify” and does not set a format. My advice, not a legal requirement, is to give it in writing by a method that proves the date, such as registered post, email with a read receipt, or through the property manager with a signed acknowledgement. If you rent the unit as a holiday home instead, the permit and cash-flow model are different, and I cover them in my guide to Dubai holiday home rental.
How a Capped Rent Changes Net Yield
A RERA rent increase cap matters most to investors through net yield. The example below is arithmetic, not a forecast. I assume a unit bought for AED 1,500,000, a current rent of AED 90,000 a year, and AED 20,000 a year of non-rent costs such as service charges and maintenance. Costs are held flat to isolate the effect of the rent.
| Increase allowed | Annual rent | Rent after AED 20,000 costs | Net yield on AED 1.5m |
|---|---|---|---|
| 0% | AED 90,000 | AED 70,000 | 4.67% |
| 5% | AED 94,500 | AED 74,500 | 4.97% |
| 10% | AED 99,000 | AED 79,000 | 5.27% |
| 15% | AED 103,500 | AED 83,500 | 5.57% |
| 20% | AED 108,000 | AED 88,000 | 5.87% |
At a 0% cap the net yield stays at 4.67%. At the full 20% it reaches 5.87%. Each 5% step adds about 0.3 percentage points, because the extra rent drops straight to the bottom line when costs do not move.
Now reverse the case. Suppose the cap is zero and costs rise 5%, to AED 21,000. Net rent falls to AED 69,000 and the net yield to 4.60%. A flat rent and rising costs squeeze the return, and no clause in the lease fixes that.
A Renewal Timeline for Landlords
A RERA rent increase works best as a calendar, not a conversation. Follow this order.
- Day 150 to 120 before expiry. Find the expiry date in the Ejari record and run the Rental Index calculator with the current annual rent.
- Decide the figure. The result is a ceiling. Choose a number at or below it, with the market and your tenant in mind.
- Day 100 or earlier. Serve the notice with the proposed rent, the lease expiry date and the calculator result attached.
- Negotiate. Article 13 allows both sides to amend terms before expiry. Record any change in writing.
- Renew. Sign the renewal at the agreed rent and register it in Ejari.
- No agreement. The Tribunal may set a fair rent under Article 13, using the criteria in Article 9.
Keep the notice, the proof of delivery and the calculator screenshot together. They answer most disputes about a RERA rent increase.
Model the first renewal at the index result, not the asking rent, using my guide to Dubai net rental yield. If many similar units are about to complete nearby, see how to stress-test a purchase against oversupply before relying on rent growth.
Where the Sources Disagree
Sources differ on the brackets and the RERA rent increase rules. Here is what I found.
- Decree number. The Dubai Legal Portal publishes the rent-cap decree as Decree No. 43 of 2013. The DLD launch page refers to Decree No. (34) of 2013. I use the number on the legal portal text.
- Top bracket wording. The decree says 20% applies where rent is more than 40% less than the average. The DLD launch page words the top end as rents that “exceed the average by more than 40%”. The decree text is clear, and I follow it.
- The DIFC. The decree says it applies to landlords in free zones such as the DIFC, while the DLD FAQ says the index excludes the DIFC. If your unit is there, confirm the position with the DIFC authorities or a lawyer.
When in doubt, use the official calculator and keep the result.
Limits of this article. It relies on the legal texts and DLD pages as I opened them in October 2026, and DLD updates the index. The yield table is arithmetic on assumed numbers, not a forecast. This is general information, not legal or investment advice, so confirm details with DLD or a qualified lawyer.
FAQ
What is a RERA rent increase?
It is the permitted rise in rent when a Dubai residential lease is renewed. The cap comes from Decree No. 43 of 2013, which compares your rent with the average for similar units in the RERA-approved rent index. Dubai Land Department now publishes that index as its Smart Rental Index.
How much notice must a landlord give for a rent increase in Dubai?
Article 14 of Law No. 26 of 2007, as amended, says that unless the parties agreed otherwise, a party who wants to amend the lease on renewal must notify the other at least 90 days before the lease expires. Dubai Land Department says an increase is not applied if that notice is late.
What is the maximum RERA rent increase a landlord can charge?
Under Decree No. 43 of 2013 the cap runs from 0% to 20% of the current rent. It depends on how far your rent sits below the average for similar units: up to 10% below allows no increase, and more than 40% below allows 20%. The index calculator gives the figure for your unit.
Is there an official rent increase calculator for Dubai?
Yes. Dubai Land Department offers a Rental Index service on its website and in the Dubai REST app. You enter the tenancy expiry date, property type, area, number of rooms and current annual rent, and it shows the permitted increase and the average rent. DLD describes the service as immediate.
What happens if the landlord misses the 90-day deadline?
Dubai Land Department states that if the index shows a property qualifies for an increase but the landlord did not notify the tenant at least 90 days before expiry, the increase is not applied. The renewal normally continues at the current rent unless both sides agree otherwise.
Do I need to update Ejari after agreeing a new rent?
Article 4 of the law requires lease contracts to be registered with RERA, and Ejari is the registration system. Register or renew the contract with the agreed rent. Dubai Land Department says a renewed Ejari contract can run from under a year to a maximum of ten years.
Your Next Step
Before your next renewal, run the calculator, write down the notice date and model the yield at the capped figure. If you want a second pair of eyes on a Dubai let or on a purchase you are underwriting, you can contact us here and send the unit details.
