Dubai’s real estate market is booming, driven by an extraordinary surge in demand that has outpaced the existing supply.
As the city experiences a notable rise in demand for both villas and apartments, rental prices are steadily climbing, and there are expectations of further increases in the coming months. However, it’s essential to know the legal limits on rent hikes set for landlords.
The Dubai Land Department (DLD) offers a convenient rental increase calculator. This tool allows tenants to verify whether the recent rent increase imposed by their landlord complies with the regulations outlined in Decree No. (2) of 2011.
How are rental increases calculated?
- If the rent is 10 percent less than the market value, there is no increase
- If the rent is 11-20 percent lower than the market value, the maximum increase may be up to 5 percent
- If the rent is 21-30 percent lower than the market value, the maximum increase may be up to 10 percent
- If the rent is 31-40 percent lower than the market value, the maximum increase may be up to 15 percent
- If the rent is lower than 40 percent or more of the market value, the maximum increase may be up to 20 percent