FAQ: Unlawful Rent Increase During or Upon Renewal of Contract — Tenant's Rights and Remedies

CONTEXT

A landlord cannot unilaterally increase rent during a valid contract term. Any demand for a mid-contract increase — regardless of market conditions or the landlord's justification — is unlawful without the tenant's consent. Even at renewal, increases are subject to strict procedural and percentage limits under Dubai law. A demand for 30–40% more is in most cases either entirely prohibited or significantly overstated.

LEGAL BASIS

• Dubai Law No. 26 of 2007, as amended by Dubai Law No. 33 of 2008

• Rental Index service of the Dubai Land Department

Rules governing rent increases:

• No increase is permitted during the valid term of the contract

• An increase at renewal is only permissible if:

• The landlord provides written notice at least 90 days before contract expiry

• The increase does not exceed the limits set by the official RERA Rental Index

• The maximum permitted increase at renewal — even where current rent significantly lags market rates — is capped at up to 20%, depending on the gap between current rent and the RERA index average

Mid-contract increase without tenant...