Dubai Land Department has placed some rules make sure tenants aren’t paying over the odds. There’s a catch, though. With so many people wanting to live here, the cost-of-living can be high and finding a good place to live can be competitive.
Existing Tenancy Contracts:
Existing tenants whose homes have been up for renewal are seeing some sharp increases, so much as 20 percent in some places such as Jumeirah Village Circle and Sports City to name a couple. So if you are one of these tenants, or a would-be tenant, you’ll be pleased to hear that the law is on your side. And that’s where we come in – because there’s a handy Dubai rent calculator to help you make sure you’re not being overcharged.
Rent Agreements (EJARI):
Usually, rental agreements between a landlord and tenant in Dubai last for 12 months. Tenants have the right to renew their contracts, provided they let their landlord know 90 days before the lease is up. Landlords can raise rent on the condition that 90 days’ notice is given prior to the expiry of the tenancy period. That said, the landlord is only allowed to raise rent within the parameters set by the Dubai Land Department.
RERA Calculator
You can work this out by visiting the authority’s RERA Calculator. This will tell you how much your landlord can legally raise your rent by. Rent increases are determined by a tenant’s current rental agreement, compared to the average rental market rate in the specific area in which they live. The RERA calculator is used to determine allowable rental increases when leases are renewed. It provides a benchmark rental price for different communities and limits how much rents can go up each year.
The calculator was revised on March 1st to make renewal rents more aligned with current market prices. According to the CEO of a renowned real estate in Dubai, tenants who have lived in their properties for over two years are most likely to see a bigger increase when renewing their lease due to the changes. He estimates rents could rise 10-20% in the short term for areas that have experienced significant rental growth in the past two years, such as popular villa communities and waterfront apartment buildings.
According to the Land Department’s Decree Number 43, a landlord must follow the rules below:
Dubai sees a surge in property prices, driven by intensified buyer demand
- If your rent is less than 10 percent below the average market rate, no rent increase is permitted.
- If your rent is between 11 percent and 20 percent below the average market rate, a maximum increase of five percent is permitted.
- If your rent is between 21 percent and 30 percent below the average market rate, a maximum increase of 10 percent is permitted.
- If your rent is between 31 percent and 40 percent below the average market rate, a maximum increase of 15 percent is permitted.
- If your rent is more than 40 percent below the average market rate, a maximum increase of 20 percent is permitted.
