Revisions to Dubai's Rental Increase Regulations Enhance Transparency and Fairness - Smart Zones® Luxury Properties

Revisions to Dubai’s Rental Increase Regulations Enhance Transparency and Fairness

The Real Estate Regulatory Authority (RERA) has implemented a revised rental increase calculator, effective March 1, 2024. This calculator serves as the sole benchmark for determining permissible rent adjustments upon lease renewal. Previously, landlords could seek evaluations based on an outdated system. The updated approach promotes transparency and predictability for tenants by aligning rental increases with current market conditions.

While the new system establishes the RERA calculator as the primary determinant, landlords still have the option to request re-evaluations if they believe their property merits a higher rent. However, effective April 1, such requests must be accompanied by a relevant legal order obtained through the Rental Dispute Centre (RDC). This streamlined process ensures fair and transparent assessments based on the updated market data reflected in the calculator.

Data suggests a significant number of rental agreements (72,885) were renewed in the first quarter of 2024. This high volume underscores the need for a single, reliable source of rent increase calculations, as envisioned by the RERA calculator. The additional legal requirement for re-evaluations further fosters trust and clarity for both landlords and tenants.


Publish 5 Apr 2024


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