Out now – new decree on rent increases in Dubai

Dubai Marina

The latest change to the rent-cap rules was issued in a decree on Saturday by the Vice President, Sheikh Mohammed bin Rashid, in his capacity as Ruler of Dubai. Whilst the earlier rule stated that a rent increase was allowed only if the existing tenant was paying more than 25 percent below the average rent, the new rule now allows landlords to increase the rent if it is more than 10 percent lower than the market.

Under the previous rent cap rules, rents from 26-35 percent below the market rate could be increased by 5 percent, those 36-45 percent below by 10 percent, 46-55 percent below by 15 per cent and rents more than 55 percent below market rate could be increased by 20 percent.

The new bands as per the revised decree are:

  • 5 percent increase if the rent is 11-20 percent below market rate
  • 10 percent rise if the rent is 21-30 percent below average rate
  • 15 percent hike if the rent is 31-40 percent below market rate

Will this new rental cap put tenants at a disadvantage? Do you think rents will increase substantially as a result of this? Post your comments below.

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