Dubai: Can rents be increased every year? Caps and calculations explained

Dubai: Can rents be increased every year? Caps and calculations explained

With rent rise in Dubai registering historic highs in 2022, tenants are getting increase notifications of between 15 and 20 per cent this year.

Sarah Hewerdine, head of marketing at agency-owned real estate website Houza, said it can be a “painful time” for tenants to accept these rent increases. “However, they should know that the RERA (Real Estate Regulatory Agency) rent calculator is there to protect them, and there are always areas available where they can save money.”

She said the typical term for an Ejari contract is 12 months, with a landlord having the right to increase the rent each year, provided it is in line with the RERA calculator. The regulator has put caps in place to protect tenants “in a market as active as we are in now."

— If the rent is 10 per cent less than the market value, there is no increase.

— If it is 11-20 per cent lower, the maximum increase may be up to 5 per cent.

— If it is 21-30 per cent lower, the maximum increase may be up to 10 per cent

— If it is 31-40 per cent lower, the maximum increase may be up to 15 per cent.

— If it is lower