The 5 Rent Increase Cap Tiers — RERA Decree 43/2013

Every permitted rent increase in Dubai must fall within one of five tiers, defined by how much your current annual rent is below the RERA Smart Rental Index average for comparable properties in your specific building. The cap is a ceiling — your landlord can always offer less.

Tier 1 — You Pay 0–10% Below Market Average
Your rent is already close to market. The law gives you full protection — no increase is legally permitted this cycle, regardless of what the landlord claims.
0%
Maximum Increase
Tier 2 — You Pay 11–20% Below Market Average
A small adjustment is permitted. Maximum 5% of your current annual rent. Example: AED 80,000 → max new rent AED 84,000.
5%
Maximum Increase
Tier 3 — You Pay 21–30% Below Market Average
Moderate adjustment permitted. Maximum 10% of your current annual rent. Example: AED 70,000 → max new rent AED 77,000.
10%
Maximum Increase
Tier 4 — You Pay 31–40% Below Market Average
Significant adjustment permitted. Maximum 15% of your current annual rent. Example: AED 60,000 → max new rent AED 69,000.
15%
Maximum Increase
Tier 5 — You Pay More Than 40% Below Market Average
The highest tier — reserved for significantly underpriced contracts. Maximum 20% of your current annual rent. Example: AED 55,000 → max new rent AED 66,000.
20%
Maximum Increase

Source — Decree No. 43 of 2013, Article 1: "The rent increase percentage for renewed real estate lease contracts in the Emirate of Dubai shall be determined as follows: (a) No increase, if the rental is less than 10% below average market rental; (b) 5% of rent value, if rental is 11–20% below average; (c) 10%, if 21–30% below; (d) 15%, if 31–40% below; (e) 20%, if more than 40% below." This decree remains in force in 2026 and is the binding legal text for all residential tenancy renewals in Dubai.

Real Worked Examples — Dubai Marina 2BR (RERA Index Avg: AED 100,000/yr)

These examples use a 2-bedroom apartment in Dubai Marina where the RERA Smart Rental Index average is AED 100,000 per year. The gap between your contract rent and this figure determines your tier.

Tier 1 — No Increase
RERA Index AverageAED 100,000
Your Current RentAED 92,000
Gap Below Market8%
Decree 43 Band0–10%
Max Increase Cap0%
✅ No increase permitted. Rent stays at AED 92,000.
Tier 2 — Max 5%
RERA Index AverageAED 100,000
Your Current RentAED 83,000
Gap Below Market17%
Decree 43 Band11–20%
Max Increase Cap5%
Max new rent: AED 87,150/yr (AED +4,150)
Tier 3 — Max 10%
RERA Index AverageAED 100,000
Your Current RentAED 75,000
Gap Below Market25%
Decree 43 Band21–30%
Max Increase Cap10%
Max new rent: AED 82,500/yr (AED +7,500)
Tier 4 — Max 15%
RERA Index AverageAED 100,000
Your Current RentAED 65,000
Gap Below Market35%
Decree 43 Band31–40%
Max Increase Cap15%
Max new rent: AED 74,750/yr (AED +9,750)
Tier 5 — Max 20%
RERA Index AverageAED 100,000
Your Current RentAED 55,000
Gap Below Market45%
Decree 43 Band40%+
Max Increase Cap20%
Max new rent: AED 66,000/yr (AED +11,000)

💡 Even after a 20% increase in Tier 5, the new rent (AED 66,000) is still 34% below the market average (AED 100,000) in this example — the landlord can apply the 15% cap at the next renewal too, continuing to close the gap. This is why tenants with very old contracts in rapidly rising areas face several consecutive large increases until their rent reaches market level.

Dubai Rent Increase Cap Checker — Free Calculator 2026

Enter your current rent, the RERA Index average for your area (or use the dropdown to auto-fill a reference figure), and the landlord's proposed rent to instantly get your cap tier, maximum legal rent, and a ready-to-send response letter if the landlord is overclaiming.

3 Non-Negotiable Rules That Apply Alongside the Cap

Even if a proposed increase is within the Decree 43 cap, it is still illegal if these three conditions are not satisfied.

🔔
Rule 1 — 90-Day Written Notice
The landlord must give you at least 90 days' written notice before the proposed increase takes effect. This is required under Law No. 33 of 2008. Notice given by WhatsApp, phone call, or verbal request does not count — it must be a formal written notice delivered to the tenant. If only 60 or 30 days were given, the increase is unenforceable at that renewal and the contract renews at the current rent.
📅
Rule 2 — Renewal Only, Never Mid-Tenancy
A landlord cannot increase rent during a live contract — only at the point of renewal when the existing contract expires. Any attempt to raise rent mid-lease without mutual written agreement from the tenant has no legal validity. For annual contracts, this means a maximum of one increase per year, and only at the contract end date.
📊
Rule 3 — Must Align with RERA Smart Index
The 0–20% cap tiers are not self-declared by the landlord — they are determined by the official RERA Smart Rental Index result for your specific building. A landlord cannot claim your rent is "40% below market" based on a Dubizzle listing they found — the official benchmark is the DLD Smart Rental Index, accessed via dubairest.ae. Disputes over which tier applies are decided by the Rental Dispute Centre using the official index figure.
🚫
Bonus Rule — No Eviction for Refusing an Increase
A landlord cannot evict a tenant solely for refusing to accept a rent increase — even a legally permitted one. The right to propose a Decree 43-compliant increase and the right to seek possession are entirely separate legal tracks. If a landlord threatens eviction following a rent dispute, document everything and file with the RDC immediately. Eviction for this reason is illegal and courts have consistently upheld tenants in such cases.

The 2026 Smart Rental Index — Building Star Ratings Explained

Since January 2, 2025, the old zone-based RERA Rental Index was replaced by the AI-powered Smart Rental Index, which gives every residential building in Dubai its own 1–5 star rating. This rating directly affects the index value used to calculate your Decree 43 gap — and therefore your landlord's maximum permitted increase.

⭐
1 Star — Basic
Older building, limited amenities, maintenance concerns. Index value is below the area average. Tenants in 1-star buildings face a lower benchmark and therefore less exposure to large increases.
⭐⭐
2 Stars — Standard
Average-condition building, basic facilities. Index value slightly below area average.
⭐⭐⭐
3 Stars — Mid-Quality
Well-maintained, good amenities, adequate security. Index value aligns with the area average benchmark.
⭐⭐⭐⭐
4 Stars — Good
Recent construction or well-upgraded, quality facilities. Index value above area average — landlords in 4-star buildings may have a higher benchmark.
⭐⭐⭐⭐⭐
5 Stars — Premium
Premium finishes, top amenities, concierge, excellent maintenance. Index value significantly above area average. Landlords in 5-star buildings can set — and justify — higher rents.

📌 Key facts about the Smart Index: Ratings are based on 60+ criteria including building age, sustainability, security, civil defence compliance, and maintenance quality. The index is updated in real time (not yearly like before). A landlord can improve a building's rating — and potentially increase the index benchmark — by carrying out approved renovations. As of 2026, building star ratings are visible to property owners; the DLD is considering making them publicly visible to tenants. Access your building's index via the Dubai REST app (Ejari or DEWA number required).

How to Check Your Exact Cap — Step by Step

  • Step 1: Download the free Dubai REST app (iOS / Android) or visit dubairest.ae — official DLD platform.
  • Step 2: Go to "Rental Index" and enter your Ejari number or your DEWA number, or search by building name and your unit type (studio / 1BR / 2BR etc.).
  • Step 3: The index will return the official rental range and average for your specific building and unit type. Note the average figure (midpoint of the range).
  • Step 4: Divide your current annual rent by the index average. Subtract from 1 and multiply by 100 to get your gap percentage. Example: current rent AED 75,000 ÷ index average AED 100,000 = 0.75 → gap = 25%.
  • Step 5: Map your gap to the Decree 43 tier above — 25% below market = Tier 3 = maximum 10% increase.
  • Step 6: If the landlord's proposed increase exceeds the maximum cap, send a written rejection citing RERA Decree No. 43 of 2013 and the official index result. If the landlord insists, file at the Rental Dispute Centre (RDC) — online via Dubai REST, or in person at Dubai Courts, Deira.

Frequently Asked Questions — Dubai Rent Increase 2026

My landlord says I am 45% below market and wants 20% — how do I verify this claim? +
You do not have to accept your landlord's market claim — the legally binding benchmark is the official RERA Smart Rental Index for your specific building, not the landlord's view. Open the Dubai REST app or dubairest.ae, enter your Ejari or DEWA number, and get the official index average for your unit type. If the official figure shows you are only 25% below market, your cap is 10% — not 20%. Any landlord who insists on a higher tier than the official index supports is overclaiming, and you can reject the excess and file at the RDC if needed. The RDC's determination will be based on the official index, not the landlord's Dubizzle screenshots.
Can my landlord increase rent every year in Dubai? +
Yes — unlike Sharjah (3-year freeze) or Ajman (3-year freeze), Dubai has no freeze period. Landlords can propose an increase at every annual renewal, subject to the 90-day notice rule and the Decree 43 cap for that cycle. However, if your rent is within 10% of the index average, the cap is 0% — meaning even though the landlord can propose an increase, the maximum permitted is zero. In practice, most tenants already paying close to market rates see no increase at renewal. The absence of a freeze is why Dubai long-term tenants can face consecutive annual increases if market rents are rising rapidly.
My landlord gave me only 45 days' notice — what are my rights? +
You are fully protected. Dubai Law No. 33 of 2008 requires a minimum of 90 days' written notice before any rent change takes effect at renewal. If only 45 days were given, the proposed increase is legally unenforceable for that renewal cycle — the contract must renew at your existing rent. Send the landlord a written rejection stating that the 90-day notice requirement under Law No. 33/2008 has not been satisfied, and that you are renewing at the current rent. Keep a copy of all communications. If the landlord attempts to force the increase regardless, file immediately at the Rental Dispute Centre.
Is there a cap on rent increases for commercial properties in Dubai? +
The Decree 43/2013 tiered cap system applies to residential properties. Commercial tenancies in Dubai are governed by different rules — there is no statutory percentage cap on commercial rent increases equivalent to the residential Decree 43 framework. Commercial leases are primarily contract-driven, and increases are determined by what was agreed in the tenancy contract and by commercial market norms. Disputes on commercial leases can still be filed at the Rental Dispute Centre. Tenants of commercial properties in Dubai should pay particular attention to what their contracts say about rent review mechanisms at renewal.
What happens if I refuse to pay the increased rent and the landlord takes me to court? +
If the landlord's proposed increase exceeded the Decree 43 cap and you correctly rejected the excess, you are on solid legal ground. Continue paying the existing rent (or the legally maximum rent if you accept the capped increase) in full and on time — do not withhold all payment, as this creates a non-payment issue separate from the increase dispute. Document everything in writing. If the landlord files at the RDC, the Centre will assess the RERA index and the cap — and if you were correct, the landlord's claim will be rejected or adjusted to the capped amount. The RDC process is designed specifically for this type of dispute and is accessible without a lawyer.