"We are renewing at 20% more" is lawful in exactly one case out of five. The ceiling on rent increases in Dubai is set by Decree No. 43 of 2013, and it is calculated not from what you pay now but from how far behind the average for similar units you are. The second rule bites harder than the first: notice of any change to the terms is due 90 days before the contract expires, otherwise there is nothing to change. Worked through the official text on the Dubai Legislation Portal.
Verified on 15 September 2026 against official sources: the texts of Decree No. 43 of 2013 and Law No. 33 of 2008 come from the Dubai Legislation Portal (dlp.dubai.gov.ae), the rent index from the Dubai Land Department. Source links sit next to every number and again at the end. This is not legal advice: any particular dispute is decided on the facts of that particular contract.
A Dubai lease renewal almost always starts with a number the landlord names. Sometimes that number is lawful, more often it is not, and the way to find out is arithmetic rather than argument: the ceiling on a rent increase in Dubai is set by law, and it depends on one quantity only — how far your current rent has fallen behind the average for similar units.
Rule one: the five steps of Decree 43
The governing document is Decree No. (43) of 2013 Determining Rent Increase for Real Property in the Emirate of Dubai, issued on 18 December 2013. Its Article 1 does not describe principles; it names the maximum percentage outright:
«When renewing Real Property Lease Contracts, the maximum percentage of Rent increase for Real Property in the Emirate of Dubai will be as follows:» — Decree No. (43) of 2013, Article 1
Five clauses follow, and none of them is about the size of the rent. They are about the gap between that rent and the market average:
| How far your rent sits below the average for similar units | Maximum increase on renewal | clause |
|---|---|---|
| up to 10% | no increase | a |
| 11–20% | 5% | b |
| 21–30% | 10% | c |
| 31–40% | 15% | d |
| more than 40% | 20% | e |
The first clause deserves a second reading, because it is the most common situation and the most widely ignored:
«no Rent increase, where the Rent of the Real Property unit is up to ten percent (10%) less than the average rental value of similar units»
If your rent has fallen behind the average by less than a tenth, there is no lawful increase at all — not 5%, not "at least something for inflation". Zero.
What "20% more" actually means
The percentages in the Decree are a ceiling applied to your rent, while the step itself is chosen by the gap. Two different quantities, and they are confused constantly. The figures below are not a market estimate and not our statistics — they are ordinary arithmetic applied to the steps of the Decree. Substitute your own values and you get your own row.
| Your rent now | Average for similar units | Gap | Step | Ceiling on renewal | check |
|---|---|---|---|---|---|
| AED 90,000 | AED 95,000 | 5% | a | AED 90,000 (unchanged) | DLD index |
| AED 90,000 | AED 105,000 | 14% | b | AED 94,500 | DLD index |
| AED 90,000 | AED 120,000 | 25% | c | AED 99,000 | DLD index |
| AED 90,000 | AED 140,000 | 36% | d | AED 103,500 | DLD index |
| AED 90,000 | AED 160,000 | 44% | e | AED 108,000 | DLD index |
Look at the last row: even when the rent has fallen behind by almost half, the limit for one renewal cycle is 20%, not "up to market". The law lets a landlord close the gap in steps only.
Rule two: the average is not named by the landlord
Where the "average for similar units" comes from is answered inside the Decree itself, in Article 3:
«The average rental value of similar units will be determined in accordance with the "Rent Index of the Emirate of Dubai" approved by the Real Estate Regulatory Agency»
So the average is not an opinion, not a sample of portal listings, and not "what the neighbour got". It is an index approved by RERA and published by the Dubai Land Department: dubailand.gov.ae → Rental Index. The calculator takes one set of inputs — area, property type and characteristics, current rent — and returns one output: the permitted percentage.
Since 2 January 2025 the index itself runs in a new edition: the DLD launched the Smart Rental Index, which adds a classification of the specific building — technical condition, quality of finishes and maintenance, location, level of services — on top of area and property type. The practical consequence is simple: two apartments of the same size in the same area are no longer required to share an "average" — the better-maintained tower has a higher one. Arguing against an increase by pointing at a cheaper building next door has stopped working: the index compares buildings, not postal addresses.
Rule three: 90 days, and it decides more cases than the percentages
The most common reason an increase fails is not the percentage at all. The procedure for changing terms is set out in Law No. 26 of 2007 as amended by Law No. 33 of 2008 (issued on 1 December 2008). Article 13 permits the parties to change terms at renewal:
«For the purposes of renewing a Lease Contract, the Landlord and Tenant may, prior to the expiry of the Lease Contract, amend any of its terms or reconsider increasing or reducing the Rent.» — Law No. (33) of 2008, Article 13
And Article 14 sets the notice period:
«Unless otherwise agreed by the parties to a Lease Contract, where either party wishes to amend any of its terms pursuant to Article (13) of this Law, that party must notify the other party of this intent no less than ninety (90) days before the date on which the Lease Contract expires.»
Three conclusions worth more than any argument about percentages:
- The clock runs to the expiry date of the contract, not from the date of the conversation. A letter sent a month before expiry is not notice under Article 14.
- The rule is symmetrical. A tenant who wants the rent reduced, or any other term changed, is bound by the same 90 days.
- "Unless otherwise agreed" is real. If the parties wrote a different period into the contract, that period governs. Read your contract first, then the law.
Who this applies to
Article 2 of the Decree also answers the free-zone question:
«This Decree will apply to Landlords, whether private or public entities, in the Emirate of Dubai, including those in Special Development zones and free zones»
So "we are in a free zone, the Decree does not reach us" is wrong. The Decree came into force on the day it was issued (Article 4) and covers landlords both private and public.
What to do in practice
If you are a tenant who has received a notice of increase:
- Check the date. If the notice arrived later than 90 days before expiry, under Article 14 there is nothing to change the terms with.
- Open the DLD calculator and get the permitted percentage for your own unit. It is the same source the other side will cite.
- Compare the percentage named to the step. An excess is grounds for a written reply citing the clause of the Decree, not for a verbal argument.
- If no agreement is reached, the claim goes to the Rental Disputes Centre: the procedure, deadlines and fee are covered in a separate article.
If you are a landlord planning an increase:
- Work out the step before naming a number: the ceiling is set by the gap, not by the yield you would like.
- Give notice in writing and with time to spare — 90 days is a minimum, not a target.
- Remember that since 2025 the index looks at the class of the building: spending on maintenance and condition feeds into the "average" from which your own ceiling is then calculated.
Three expensive misconceptions
- "The contract expired, so the price is free." No: the Decree speaks of renewing, and the ceiling attaches to renewal.
- "The landlord told me verbally, that is enough." Article 14 requires the other party to be notified; in the tribunal the side with documentary proof of notice prevails. For the same reason the contract is registered in Ejari — an unregistered contract is hard to rely on.
- "If I refuse the price I have to move out." An increase and an eviction are different procedures with different deadlines: the grounds and the twelve-month eviction notice are covered here.
Sources
- Decree No. (43) of 2013 Determining Rent Increase for Real Property in the Emirate of Dubai — Dubai Legislation Portal: Article 1 (the five steps), Article 2 (scope, free zones included), Article 3 (the RERA index), Article 4 (entry into force). Issued 18 December 2013.
- Law No. (33) of 2008 Amending Law No. (26) of 2007 — Dubai Legislation Portal: Article 13 (changing terms at renewal), Article 14 (90-day notice). Issued 1 December 2008.
- Dubai Land Department — Rental Index — the official calculator of the permitted increase.
- Dubai Land Department — Smart Rental Index 2025 — launched 2 January 2025, building classification.
- u.ae — Leasing a property in the UAE — UAE Government portal: the reference to Law No. 43 of 2013 and the RERA calculator.
