Understanding Dubai’s Rent Increase Law in 2025

With the launch of the Smart Rental Index in 2025, Dubai’s rental market has entered a new era of transparency. Still, many tenants are unsure how rent increases are communicated, what the legal thresholds are, and what they can do if they believe a landlord has overstepped.

This guide breaks down the essentials of Dubai rent increase law 2025—including notice periods, percentage caps, and how to handle disputes—with a step-by-step approach that empowers tenants to respond with confidence.

Rent Increase Notice Periods

Under current regulations, a landlord must give at least 90 days’ written notice before the tenancy renewal date if they plan to increase rent.

• Format: Notices are valid only if issued in writing (email, WhatsApp, or oral communication do not count unless formally documented).

• Timing: If notice is served late, tenants are not obliged to accept the increase and can renew at the existing rate.

• Proof: Tenants should request the notice on paper or through Ejari-linked digital platforms for legal validity.

Thresholds for Rent Increases in 2025

The Smart Rental Index now dictates rent caps on a building-by-building basis. Landlords may only increase rent within the following bands:

• 0% increase if the current rent is equal to or higher than the index reference.

• 5% increase if current rent is up to 10% below index.

• 10% increase if current rent is 11–20% below index.

• 15% increase if current rent is 21–30% below index.

• 20% increase if current rent is more than 30% below index.

This ensures consistency and protects tenants from sudden, arbitrary hikes.

How to Respond to a Rent Increase Notice

Step 1: Verify Against the Index

Log into the Smart Rental Index tool with your Ejari contract details. Check if the landlord’s proposed increase matches the allowable cap.

Step 2: Document Everything

Keep copies of the notice, current tenancy contract, and index results. These will be crucial if a dispute arises.

Step 3: Negotiate First

Often, landlords prefer renewal stability over vacancy risk. Tenants can propose:

• A smaller increase in exchange for signing a 2-year contract.

• Covering minor maintenance themselves to offset the rent cap.

• Pre-paying multiple cheques for a discount.

Step 4: File a Formal Objection if Needed

If negotiations fail, tenants may submit an appeal to the Dubai Rental Dispute Center (RDC) within the 90-day notice window. Cases are typically resolved within weeks.

FAQs on Rent Increase Notices in 2025

Q: Can my landlord raise rent without notice?
No. Without 90 days’ formal written notice, the existing rent automatically carries forward.

Q: Does the index apply to all areas?
Yes. The Smart Rental Index covers every registered building in Dubai, including freehold and leasehold.

Q: What if my landlord ignores the index?
Tenants have the right to file a case with the RDC, which enforces index-based caps.

Final Word

Dubai’s rental framework in 2025 has made the process more predictable and transparent. With the Smart Rental Index, tenants have clear evidence to counter unreasonable increases, while landlords gain a fair benchmark for returns.

By understanding notice timelines, lawful thresholds, and appeal procedures, tenants can navigate renewal season with confidence—and secure a rental agreement that’s both compliant and fair.