Rent Increase in Dubai 2025: Full Legal Guide for Expats

Whether you're renting a chic apartment in Downtown Dubai or managing a portfolio of villas in Palm Jumeirah, understanding rent increase rules in Dubai is more important than ever in 2025. With the city’s real estate market booming again and demand for prime locations rising, both tenants and landlords are wondering—can the rent go up this year, and if so, by how much?

The answer isn’t always simple. That’s why we’ve put together this easy-to-digest guide covering everything from how rent increases are calculated under RERA’s rental index, to when a landlord can legally raise the rent in Dubai, to what tenants can do if they think a rent hike is unfair. 

What Are the Current Rent Increase Rules in Dubai (2025)?

Dubai follows a well-regulated rental framework overseen by RERA (Real Estate Regulatory Agency). In 2025, the core rent increase laws remain governed by Decree No. 43 of 2013, with RERA’s Rental Index Calculator continuing to serve as the primary reference for determining legal rent hikes.

Here’s what you need to know:

• No rent increase is allowed during an active lease contract. Any hike can only take effect upon renewal.
• Rent increases are tied to how your current rent compares to the average market rate in your area (per RERA's Rental Index).
• Landlords must give tenants at least 90 days’ notice before proposing a rent increase.

Still not sure where your rent stands? Use the RERA Rental Index Calculator to check.

Read more: Why Ejari is a Must for Every Tenant and Landlord in Dubai

How Is Rent Increase Calculated in Dubai Under RERA’s Rental Index?

RERA’s system isn’t random—it’s designed to keep rent hikes fair and aligned with market trends.

Here’s how it breaks down:

• If your rent is within 10% of the average rent in your area, no increase is allowed.
• If your rent is 11-20% below the market average, landlords can raise it by 5%.
• If it’s 21-30% below, the rent can go up by 10%.
• 31-40% below? That opens the door for a 15% increase.
• Anything more than 40% below allows up to a 20% increase.

Check your eligibility for an increase via the RERA rental calculator—yes, it's fully updated for 2025. 

Read more: Family-Friendly Places to Rent in Dubai: Perfect Neighborhoods

When Can a Landlord Legally Raise the Rent in Dubai?

Timing matters. According to Dubai law:

• Rent increases are only legal upon lease renewal.
• Tenants must receive a written notice 90 days before the contract ends if a rent hike is being proposed.
• Any notice sent after that period is considered null and void.

Tip: Landlords should issue this notice via email, registered mail, or WhatsApp for documentation.

 See Dubai Property for Rent

How Much Rent Increase Is Allowed in Dubai in 2025?

The maximum increase depends on how underpriced the current rent is, relative to the area’s market average, as per RERA’s guidelines.

So yes, a landlord can raise rent—but only within these percentage caps, and only if the property qualifies under the index.

Want to see if your area’s rent is changing? Visit Homeland Realty Real Estate’s project listings for a feel of current market trends. 

Can Tenants Refuse a Rent Increase in Dubai?

Absolutely—if the proposed increase doesn’t comply with RERA’s rules.

Here’s what tenants can do:

• Verify the rent increase using RERA’s tool.
• Politely reject the increase if it’s outside the legal limits.
• File a case with the Dubai Rental Disputes Center if needed.

Need guidance? Homeland Realty’s experts can walk you through the process. Contact us today for personalized advice.

What Happens If a Landlord Increases Rent Illegally?

Dubai doesn’t take illegal rent hikes lightly.

If a landlord:

• Raises rent beyond the legal limit
• Fails to give 90 days' notice
• Skips proper documentation

then the tenant can file a complaint, and the landlord could face penalties or lose the right to enforce the increase.

Disputes are handled by the Rental Dispute Settlement Center, and in most cases, decisions are made swiftly and fairly. 

Read more: The Ultimate Guide to Renting a Property in Dubai

Do Rent Increase Rules Apply to All Property Types in Dubai?

Yes—whether it’s:

• Apartments
• Villas
• Townhouses
• Commercial spaces

…the same RERA rules apply. The rental index is adjusted per property type and location, but the percentage thresholds remain consistent.

Looking for updated listings across all property types? Explore our portfolio at Homeland.ae. 

How Can Tenants Verify the Legality of a Rent Increase in Dubai?

Simple steps:

1. Head to the RERA rental calculator.
2. Enter your tenancy details (area, property type, size, current rent).
3. Check if a rent increase is allowed—and by how much.

What Should Landlords Know Before Increasing Rent in Dubai in 2025?

Landlords—before you send that rent increase notice, double-check the following:

• Is your tenant’s current rent significantly below market rate?
• Has a 90-day notice been issued in writing?
• Does your increase fall within RERA’s legal cap?

Tip: If you’re unsure, consult a professional to avoid legal pitfalls. Homeland Realty offers advisory services for landlords too.

 Rent increases are part and parcel of Dubai’s dynamic property market—but that doesn’t mean they’re unregulated. With clear frameworks in place, both tenants and landlords have tools at their disposal to ensure fair play.

Whether you’re unsure about your current rent, considering a property switch, or need expert legal guidance, Homeland Realty Real Estate is here to help. We know Dubai inside and out—and we’re just a click or call away.

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Frequently Asked Questions

Can my landlord raise rent during the contract?

No. Rent cannot be increased during an active lease. It’s only allowed upon renewal with 90 days’ written notice.

Is the RERA rental calculator updated for 2025?

 Yes, the tool reflects the most recent rental trends and adjustments for 2025.

How can I dispute an unfair rent increase?

 File a case with the Dubai Rental Disputes Center, especially if the increase violates RERA limits.

Are rent increases capped in Dubai?

Yes. Maximum increases range from 5% to 20%, depending on how underpriced your current rent is.

Can I negotiate rent increase as a tenant?

 Absolutely. Many landlords are open to reasonable negotiations—especially with long-term, reliable tenants.

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