Dubai Real Estate: 'Is there a cap on rental price increases in Dubai?'
In the vibrant city of Dubai, both landlords and tenants need to navigate the Dubai Tenancy Law (Law No. 26 of 2007, amended by Law No. 33 of 2008) when it comes to rent adjustments and evictions. Here's what you need to know as a tenant.
Firstly, if your lease has expired but a new contract has not been signed, the 90-day written notice requirement for rent increases still applies. Any rent increase must have been communicated in writing at least 90 days before the expiration date. Failure to provide this notice makes the rent increase invalid and unenforceable. As a tenant, you can maintain the old rent and dispute unlawful increases through the Rental Dispute Settlement Centre (RDSC).
The expired lease automatically renews on the same terms if no new contract is signed. This means that even if the lease has ended, the landlord cannot impose a higher rent without having respected the 90-day notice rule beforehand.
When it comes to rent increases, the allowed percentage depends on how far below the average the rent is. If the rent is between 11% and 20% below the average, the allowed increase is up to 5%. If it's between 21% and 30%, the allowed increase is up to 10%. If it's between 31% and 40%, the allowed increase is up to 15%. If the rent is more than 40% below the average, the allowed increase is up to 20%.
If a landlord wishes to evict a tenant due to the sale of the property, they must provide a 12-month written notice through notary public or registered mail. The landlord must clearly state that the reason for eviction is to sell the property in the given notice. If the tenant is evicted due to the sale of the property, they have the right to refuse and escalate the matter to the RDSC if necessary.
It's important to note that the Real Estate Regulatory Agency in Dubai regulates rent increases through a smart rental index. Tenants can verify their rent category using the Dubai Land Department's smart rent calculator online either through the Dubai Rest app or the DLD website.
Lastly, if a tenant suspects that the notice to vacate is a pretext to remove them for a higher-paying tenant, they can report this to the RDSC. The opinions expressed in this response do not constitute legal advice and are provided for information only.
[1] [Source 1] [2] [Source 2] [3] [Source 3]
- In Dubai, if a tenant's lease expires without a new contract being signed, the rent increase notice period still applies, as any increase must be communicated in writing at least 90 days before the expiration date.
- If the rent is between 11% and 20% below the average, the allowed rent increase is up to 5%, while if it's between 21% and 30%, the allowed increase is up to 10%. The Real Estate Regulatory Agency in Dubai has a smart rental index that regulates rent increases, which tenants can verify using the Dubai Land Department's smart rent calculator.
- When a landlord wishes to evict a tenant due to the sale of the property, they must provide a 12-month written notice through notary public or registered mail. Tenants have the right to refuse the eviction and escalate the matter to the RDSC if necessary.
- If a tenant suspects that the notice to vacate is a pretext for removing them to bring in a higher-paying tenant, they can report this to the RDSC.
- This analysis is based on information from various sources, such as [Source 1], [Source 2], and [Source 3], which may help both landlords and tenants in their business and investing endeavors related to real-estate in the UAE. However, the opinions expressed in this response do not constitute legal advice. It is always recommended to consult with a legal expert for detailed guidance on the Dubai Tenancy Law. Also, keep in mind that video and features on related topics are available for those seeking more in-depth knowledge.
