Dubai landlords must now provide tenants with a minimum of 90 days’ notice before implementing any rent increase upon contract renewal. Failure to comply with this rule means no increase can be enforced. Market experts highlight that this move by the Dubai Land Department (DLD) is a step toward safeguarding tenant rights. This is especially crucial in cases where landlords previously imposed arbitrary rent hikes without prior notice.
Real estate professionals have welcomed the decision, noting that it provides tenants with greater clarity regarding their rental costs. Furthermore, it allows tenants three months to prepare for any changes.
Introduction of the Digital Rental Index
At the beginning of 2025, the DLD launched a new digital Rental Index designed to offer real-time data on rental market trends. It aims to reduce disputes between landlords and tenants over sudden rent increases. Currently, the index applies exclusively to residential leases, with the possibility of extending it to commercial properties in the future.
The DLD clarified how the new index applies in cases where landlords have issued the required 90-day notice:
- If the contract was renewed before 2025, the previous rental index will apply.
- If the contract is renewed in 2025 or later, the new index will be enforced.
Prior to this, the rental index was updated annually and covered only select high-demand areas. The new system now extends to a broader range of locations across Dubai.
Rental Market Growth and Smart Rent Index
The DLD reported over 900,000 residential lease registrations in 2024. This reflects an 8% increase from the previous year. Officials believe that the introduction of the Smart Rent Index will help curb inflation, ensuring transparency and stability in the rental market.
Majid Al Marri, CEO of the Real Estate Registration Sector at the DLD, emphasized that rental adjustments will be based on multiple factors, including:
- Existing rental contract values within a building.
- The average rental values in a given area.
- The classification of the building.
A structured framework has been put in place to manage rent increases. This framework takes into account both the timing of landlord notifications and the contract renewal date. Al Marri further stated that the Smart Rent Index represents a major step in Dubai’s commitment to digital transformation, transparency, and fairness within the real estate market.
