Understanding Rent in Dubai: How to Handle the 90-Day Rent Increase Notice

 

Introduction

 

Dubai’s rental market is constantly evolving, with rental laws in place to protect both tenants and landlords. One of the most important regulations set by the Real Estate Regulatory Agency (RERA) is the 90-day rent increase notice rule. This law ensures that any rent adjustments must be communicated at least 90 days before lease renewal, allowing tenants to prepare, negotiate, or seek alternative housing options.

 

In this article, we’ll break down the legal framework for rent increases in Dubai, how rental hikes are calculated, current market trends, and practical tips for tenants to handle rent adjustments smoothly.

 

 

Legal Framework: What is the 90-Day Rent Increase Notice?

 

The Dubai rental law mandates that landlords must provide written notice to tenants at least 90 days before the contract renewal date if they intend to increase rent.

 

Key Legal Guidelines:

 

✔ Notice Period: Must be given 90 days in advance, either via registered mail or email (provided the tenant acknowledges receipt).
✔ Failure to Notify: If the landlord fails to provide a 90-day notice, they cannot increase rent for that lease cycle.
✔ Applies to All Properties: The rule applies to all types of rental properties, including apartments for rent in Dubai, villas, and commercial spaces.

 

This law ensures fairness and transparency, allowing tenants enough time to assess their options before agreeing to a higher rent.

 

 

How Rent Increases Are Calculated in Dubai

 

 

RERA regulates rent increases through its Rental Index, ensuring that landlords cannot impose excessive rent hikes. The rental adjustment is based on how much the current rent differs from the market average.

 

Here’s how rental increases are determined:

 

• No Increase → If rent is less than 10% below market rate.

• 5% Increase → If rent is 11-20% below market rate.

• 10% Increase → If rent is 21-30% below market rate.

• 15% Increase → If rent is 31-40% below market rate.

• 20% Increase → If rent is more than 40% below market rate.

 

Tip: Tenants can use the RERA Rent Calculator to check whether the proposed rent increase is legal before renewing their lease.

 

 

Dubai Rental Market Trends in 2024

 

Dubai’s rental market has seen substantial growth over the past few years.

Key Market Trends:

 

• In 2023, rental prices increased by 24% on average.

• In 2024, rental rates are projected to rise another 20% due to high demand and rising property values.

• One-bedroom apartments for rent in Dubai are the most in-demand, with 36% of renters searching for this unit type.

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This upward trend is driven by an influx of professionals relocating to Dubai, the growth of the business sector, and increased foreign investment in real estate.

 

 

How Tenants Can Handle Rent Increases in Dubai

 

 

To avoid unexpected financial strain, tenants should take the following steps:

 

Know Your Rights

• Familiarize yourself with Dubai rental laws to avoid overpaying or accepting unjustified rent increases.

 

Use the RERA Rent Calculator

• Always verify if a rent increase is within legal limits before agreeing to new terms.

 

Check the Notice Period

• Ensure the landlord provides a 90-day written notice before raising rent.

 

Negotiate with the Landlord

• If the increase seems excessive, tenants can negotiate based on RERA guidelines and market comparisons.

 

File a Complaint if Necessary

• If a landlord violates RERA guidelines, tenants can file a dispute with Dubai’s Rental Dispute Settlement Centre (RDSC).

 

Plan Your Move in Advance

• If you’re searching for a flat for rent in Dubai, start early to find better deals before your lease expires.

 

Consider Long-Term Leases

• Some landlords offer better rates for tenants willing to sign multi-year contracts.

 

 

Conclusion: Expert Guidance from Alba Homes

 

Navigating Dubai’s rental laws and market trends can be challenging, but having the right guidance makes all the difference. Whether you're looking for apartments for rent in Dubai, negotiating a lease renewal, or seeking investment opportunities, it's essential to have an expert real estate partner on your side.

 

Alba Homes specializes in real estate management in Dubai, offering tailored solutions for tenants, landlords, and investors. Our team ensures that you get the best rental deals, transparent property listings, and expert legal support to make informed decisions.

 

Need help with your lease renewal or finding a new home? Contact Alba Homes today!