UAE Rent Increase Laws: Navigating RERA and Caps
A comprehensive guide to understanding rent increase regulations in the UAE, focusing on Dubai's RERA Rental Index and Abu Dhabi's 5% cap.
Legal Disclaimer
This content is for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. Laws change frequently — always verify current regulations and consult a licensed attorney in your jurisdiction for advice specific to your situation. Landager is a property management platform, not a law firm.Information last verified: May 2026.
The United Arab Emirates—specifically its leading real estate markets of Dubai and Abu Dhabi—implements strict rent control mechanisms to protect tenants from arbitrary and unsustainable rent hikes while balancing landlords' investment returns. Rental relationships are primarily governed by Law No. (26) of 2007 as amended by Law No. (33) of 2008 in Dubai and Law No. (20) of 2006 in Abu Dhabi.
Dubai: The RERA Rental Index
In Dubai, landlords cannot increase rent simply because they want to. Rent increases are strictly governed by Decree No. 43 of 2013, enforced by the Real Estate Regulatory Agency (RERA).
The allowable increase is determined by comparing the tenant's current rent to the average market rent for a similar property in that specific community (as determined by the official RERA Rental Index calculator).
The Increase Tiers
Under Decree No. 43 of 2013, when calculating a rent increase upon renewal, the following rules apply:
- 0% Increase: If current rent is less than 10% below the average market rate.
- 5% Increase: If current rent is between 11% and 20% below the average market rate.
- 10% Increase: If current rent is between 21% and 30% below the average market rate.
- 15% Increase: If current rent is between 31% and 40% below the average market rate.
- 20% Maximum Cap: If current rent is more than 40% below the average market rate, the maximum allowable increase is capped at 20%.
90-Day Notice Rule
Even if the RERA index allows for a rent increase:
- Under Article 14 of Law No. 33 of 2008 (amending Law No. 26 of 2007), the landlord MUST notify the tenant in writing at least 90 days before the expiration of the current tenancy contract if they wish to amend any terms, including rent.
- If the landlord fails to give exactly 90 days' notice, or gives late notice, the law stipulates that no rent increase is permitted for the upcoming renewal term. The tenant has the right to renew at the previous year's absolute rate.
Abu Dhabi: The 5% Cap
Abu Dhabi maintains a simpler, stricter cap to combat inflation.
- Annual rent increases in Abu Dhabi are capped at a maximum of 5% upon lease renewal under Abu Dhabi Executive Council Resolution No. 14 of 2016.
- Under Article 20 of Law No. 20 of 2006, Abu Dhabi landlords must provide tenants with at least two months' (60 days) written notice prior to the contract renewal date if they intend to amend the conditions of the lease or enforce the 5% increase for residential properties.
If a landlord attempts to increase the rent beyond the 5% cap without a mutual, separate agreement, the tenant can escalate the matter to the Abu Dhabi Rent Dispute Settlement Committee.
Dealing with Tenant Refusals
If a landlord validly issues a rent increase notice within the 90-day (Dubai) or 60-day (Abu Dhabi) window, and the RERA index (or 5% cap) supports the increase, the tenant must either:
- Accept the increase and sign the renewal.
- Decline the increase, notify the landlord 90/60 days prior to the end date that they do not wish to renew, and vacate by the expiry of the current contract.
If a tenant refuses to accept a legal increase and refuses to vacate, the landlord can utilize the RDSC to force compliance.
Track your renewal notice windows perfectly using Landager's automated landlord tools to ensure you never miss out on legally permitted rent increases in the UAE.
Back to UAE Landlord-Tenant Laws Overview.
Sources & Official References
Frequently Asked Questions
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