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Lease Renewals and Rent Increases in Dubai
Most Dubai tenancy disputes we see start at renewal — a rent increase the tenant thinks is too high, a change of terms served too late, or a notice that was never properly given. The rules are specific, and whether a proposed increase is lawful is usually a question that can be answered from the index and the calendar rather than argued about.
Jurisdiction: Dubai, UAE.
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Overview
This page covers what happens when a Dubai tenancy comes up for renewal: how much the rent can lawfully be increased, the notice that has to be given before any term is changed, what happens when that notice is missed or served late, when a landlord can decline to renew at all, and where a renewal dispute is decided. It is written for tenants and landlords of residential and commercial property. The framework is Law No. 26 of 2007 as amended by Law No. 33 of 2008 for the renewal mechanics, Decree No. 43 of 2013 for the permitted increase measured against RERA’s rent index, and Decree No. 26 of 2013 for the forum. Whether an increase or a refusal to renew stands depends on the tenancy contract, on what was served and when, and on the index figure for the specific building.
نظرة عامة
تتناول هذه الصفحة تجديد عقود الإيجار في إمارة دبي وما يرتبط به من مسائل: الحد الأقصى المسموح به لزيادة الأجرة عند التجديد، ومهلة الإخطار الواجب توجيهها قبل تعديل أي من شروط العقد، والأثر المترتب على عدم توجيه الإخطار في موعده، والحالات التي يجوز فيها للمؤجّر عدم تجديد العقد، والجهة المختصة بنظر منازعات التجديد. والإطار التشريعي هو القانون رقم (26) لسنة 2007 وتعديلاته بالقانون رقم (33) لسنة 2008 فيما يتعلق بالتجديد والإخطار، والمرسوم رقم (43) لسنة 2013 بشأن تحديد نسب زيادة الأجرة قياساً بمؤشر الإيجارات المعتمد من مؤسسة التنظيم العقاري، والمرسوم رقم (26) لسنة 2013 بشأن اختصاص مركز فض المنازعات الإيجارية. ويتوقف مدى صحة الزيادة أو الامتناع عن التجديد على شروط عقد الإيجار، وعلى مضمون الإخطار وتاريخ توجيهه، وعلى قيمة المؤشر الخاصة بالمبنى محل العقد.
How Much Can Rent Be Increased in Dubai?
Rent increases in Dubai are capped by Decree No. 43 of 2013 on Determining the Increase in the Real-Estate Rentals in the Emirate of Dubai. The permitted increase depends on how far the current rent sits below the average market rent for a similar unit, measured against the RERA Rent Index:
- No increase where the current rent is less than 10% below the market average
- Up to 5% where it is 11–20% below
- Up to 10% where it is 21–30% below
- Up to 15% where it is 31–40% below
- Up to 20% where it is more than 40% below
The decree applies across the emirate, including special development areas, free zones and the DIFC. The benchmark is the Rent Index approved by the Real Estate Regulatory Agency, not the landlord’s own view of the market — which is why the first step in a renewal dispute is checking the index figure for the specific unit.
Since January 2025 the Dubai Land Department has assessed those market averages through the Smart Rental Index, which classifies buildings by condition, finish, location and building services rather than treating a whole community as one market. Two towers on the same street can therefore carry different averages, and a landlord relying on a neighbouring building’s figure may be relying on the wrong benchmark. Where the parties cannot agree, Article 9 of Law No. 26 of 2007 allows the tribunal to determine a fair rent using the criteria set by RERA, the state of the market and the condition of the property.
The 90-Day Rule — and What Happens If It Is Missed
A rent increase or any other change to the tenancy terms is not something either side can spring at renewal. Under Article 14 of Law No. 26 of 2007, as amended by Law No. 33 of 2008, a party wanting to amend the terms must notify the other no less than 90 days before the tenancy contract expires, unless the parties have agreed otherwise.
Miss that window and the contract generally renews on its existing terms. This is the single most common reason a landlord’s increase fails at the Rental Disputes Settlement Centre — not that the figure was wrong, but that notice was served too late or in a way the tenant did not receive.
Eviction is a different regime, and it has two branches. Article 25(1) allows a landlord to seek eviction during the tenancy on specified grounds — including non-payment of rent where the tenant does not pay within 30 days of a notice, unauthorised subletting, use for an illegal purpose or a purpose contrary to public order or morals, alterations that endanger the property, use contrary to the lease or to planning and building rules, and other breaches of the law or the contract not remedied within 30 days. Article 25(2) deals with eviction on expiry and is limited to four owner-related grounds: demolition or reconstruction, restoration or maintenance that cannot be carried out with the tenant in place, the owner or a first-degree relative wanting to occupy the property, or the owner wishing to sell. Eviction on expiry requires at least 12 months’ notice, and notices under Article 25 must be served through a Notary Public or by registered mail. See our landlord page for the landlord-side process.
What We Check on a Renewal
- the current tenancy contract and any earlier renewals, and what they say about notice and increases
- the Ejari registration and whether the recorded rent matches what is actually paid
- the RERA Rent Index figure for a comparable unit in that community
- the date, method and content of the notice served
- whether the proposed increase falls inside the Decree 43 band
- any changes to the terms beyond rent — payment schedule, cheques, permitted use, maintenance obligations
- where the tenancy is commercial, the additional issues covered on our rental disputes and the RDC page
If the increase is lawful and properly noticed, we say so. If it is not, the position is usually straightforward to put in writing before anyone files a case.
Changing Terms Other Than the Rent
Rent is the term people argue about, but Article 13 lets either party revisit any term of the tenancy for the renewal period, and Article 14 applies the same 90-day notice to all of them. In practice that means a renewal notice can propose:
- a different rent, subject to the Decree No. 43 of 2013 bands;
- a different number of instalments — moving from four cheques to one is a change of terms, not a matter of preference;
- a different term length;
- a change to who carries maintenance, and to any repair threshold;
- a change to the deposit;
- a change to permitted use, sharing or subletting;
- a change to which party pays service charges or cooling.
The payment schedule is worth singling out. A landlord who leaves the headline rent alone but moves the tenant from four cheques to one has changed a term of the tenancy, and that change carries the same 90-day notice requirement as a rent increase. Tenants frequently accept it as though it were outside the rules; landlords frequently impose it without notice. Both are avoidable.
If neither party serves notice in time, the existing terms carry into the renewal period. That cuts both ways: a tenant who wanted a longer term or a different payment structure has also lost the opportunity for that cycle.
When a Landlord Will Not Renew
A landlord who does not want the tenancy to continue cannot simply decline to renew. Ending a tenancy at expiry requires one of the grounds in Article 25(2) — demolition or reconstruction, comprehensive maintenance that cannot be carried out with the tenant in place, use by the owner or a first-degree relative, or sale — together with twelve months’ notice served through a Notary Public or by registered mail.
Two consequences follow that are specific to renewals:
- Silence renews the tenancy. Under Article 6, a tenant who stays on after expiry without the landlord objecting renews on the same terms for the same period or one year, whichever is shorter. A landlord who lets the date pass while deciding has renewed the tenancy.
- A refusal to renew used as leverage on rent is a different thing from a genuine Article 25(2) ground. Where a landlord recovers the property for personal use, Article 26 prevents re-letting it to a third party for two years for residential property or three years for non-residential, and a tenant who finds it back on the market inside that period may ask the tribunal for fair compensation.
Where a notice to vacate has been served, the questions are the ground relied on, the form of service and the date — covered in more detail on our tenant and landlord pages.
Disputing a Renewal or Rent Increase
Renewal disputes are decided by the Rental Disputes Settlement Centre under Decree No. 26 of 2013, whose jurisdiction covers property in Dubai including free zones, subject to the exclusions in Article 6 — free zones with their own tribunals, lease finance contracts, and long-term leases under Law No. 7 of 2006. The route in outline: register the claim, attempt settlement at the Centre’s conciliation stage, then a first instance tribunal if it does not resolve. The forum and procedure are set out on our page about rental disputes and the RDC.
Three practical points that decide most renewal cases:
- Timing. The claim is usually strongest before the renewal date, not after it. A tenant who pays the increased rent for six months and then disputes it is in a weaker position than one who raised it when the notice arrived.
- The index figure. The dispute is often arithmetic rather than legal: which building the benchmark comes from, and where the current rent sits against it. Get that figure before arguing about the percentage.
- Continuing to pay. Disputing an increase is not a reason to stop paying the existing rent. Non-payment converts a renewal dispute into an eviction case under Article 25(1), which is a much worse position to defend.
Documents for a Renewal or Rent-Increase Matter
A renewal or rent-increase matter turns on a small, specific file:
- The current tenancy contract and the previous one, so the terms being changed are visible.
- The Ejari certificate for the current term.
- The renewal or rent-increase notice, with proof of how and when it was served — Notary Public attestation, registered-mail receipt, or courier record.
- Any earlier correspondence about renewal, including messages proposing figures.
- The RERA rent index figure each side is relying on, and which building it relates to.
- Payment records for the current term, showing the rent is up to date.
- Where the landlord has served a notice to vacate: the notice, the ground relied on, and any permits, technical report or sale documents served with it.
- For a commercial tenancy, the trade licence and anything showing agreed fit-out or service-charge arrangements affected by the change.
The notice and its proof of service are the two documents that decide the outcome most often. Everything else supports them.
Official Legal Sources
The statements of law on this page rest on the following official sources:
- Law No. 26 of 2007 and Law No. 33 of 2008 — Dubai Legislation.
- Decree No. 43 of 2013 on rent increases — Dubai Legislation.
- Decree No. 26 of 2013 on the Rent Disputes Settlement Centre — Dubai Legislation.
- Dubai Land Department — the rental index and Ejari registration.
Related pages
- Tenancy contracts and lease agreements — drafting the renewal mechanic before it matters.
- Rental disputes and the RDC — the forum and procedure.
- Dubai landlord and tenant law — the legislation explained.
To have a renewal notice or a proposed increase reviewed, send us the notice and the dates. Index figures, fees and procedures change; where one matters to a decision, check it against the official source or ask us to confirm the current position.
Only if the current rent is more than 40% below the average market rent for a comparable unit on the RERA Rent Index. Decree No. 43 of 2013 sets the bands: no increase below a 10% gap, then 5%, 10%, 15% and 20% as the gap widens.
Article 14 of Law No. 26 of 2007, as amended by Law No. 33 of 2008, requires at least 90 days’ notice to amend the terms of the tenancy, unless the parties agreed otherwise. Notice served later than that generally does not take effect for the coming term.
No. Ending a tenancy on expiry is governed by Article 25(2), which allows it only where the owner intends to demolish or reconstruct, where restoration or maintenance cannot be carried out with the tenant in place, where the owner or a first-degree relative wants to occupy the property, or where the owner wishes to sell. At least 12 months’ notice is required, served through a Notary Public or by registered mail. Wanting a higher rent is not a ground. Eviction during the tenancy is a separate regime under Article 25(1) and applies to breaches such as non-payment after a 30-day notice.
Decree No. 43 of 2013 applies to landlords across the Emirate of Dubai, including special development areas, free zones and the Dubai International Financial Centre.
Normally at the Rental Disputes Settlement Centre, which under Article 6 of Decree No. 26 of 2013 has exclusive jurisdiction over rent disputes between landlords and tenants of property in the Emirate, including in free zones. That Article also excludes certain categories — rent disputes in free zones that have their own tribunals or special courts, disputes arising from lease finance contracts, and disputes arising from long-term leases governed by Law No. 7 of 2006 — so the forum should be confirmed against the specific lease.
Only with notice. Changing the payment schedule changes a term of the tenancy, so Article 14 applies in the same way as it does to the rent: notice at least 90 days before expiry, unless the contract sets a different period. A change imposed without that notice is open to challenge, and a tenant who simply complies has effectively accepted it for that cycle.
Yes. Disputing a renewal or an increase does not suspend the tenancy or the rent. Non-payment converts the dispute into an eviction case under Article 25(1), which is a far worse position. The usual approach is to keep paying at the existing rate while the increase is challenged.
Since January 2025 the Dubai Land Department assesses the market average through the Smart Rental Index, which classifies buildings on condition, finish, location and services rather than treating an entire community as a single market. That means the correct comparison is your building’s classification, not the neighbouring tower’s rent. Most renewal disputes turn on that figure before they turn on the percentage.
Then the existing terms generally carry into the renewal period, and a tenant who stays on without objection renews under Article 6 on the same terms for the same period or one year, whichever is shorter. The same applies in reverse: a tenant who wanted different terms and did not serve notice has lost that opportunity for the cycle.
Usually, and often it is the better outcome. Where a notice is valid and the increase sits inside the permitted band, there is nothing to challenge and the realistic choices are negotiation or relocation. Where the notice is late or the index figure is wrong, that is leverage for a negotiation as much as it is a ground for a claim.
The notice regime is the same, but more terms are usually in play — service charges, fit-out already installed, reinstatement obligations, permitted activity and any assignment provisions. A renewal is the natural point to correct a lease that has been running on unclear terms, and it is worth treating it as a negotiation rather than a form to sign.
At the Rental Disputes Settlement Centre, under Article 6 of Decree No. 26 of 2013, for property in Dubai including free zones — subject to that Article’s exclusions for free zones with their own tribunals, lease finance contracts and long-term leases governed by Law No. 7 of 2006.
The current and previous tenancy contracts, the Ejari certificate, the renewal or increase notice with proof of how it was served, any correspondence about the renewal, the rent index figure being relied on, and payment records for the current term. The notice and its proof of service are the two that most often decide the outcome.
Disclaimer
The information provided on this website is for general informational purposes only and should not be construed as legal advice or relied upon as a substitute for professional legal guidance. Visiting this website or contacting Dubai Property Lawyer does not establish a client-lawyer relationship. While we strive to provide accurate and up-to-date information, we make no warranties or representations regarding the accuracy, completeness, or reliability of the content herein. For personalized legal advice and solutions tailored to your specific circumstances, please consult with one of our qualified property lawyers.