Dubai Rental Index: How Much Can Your Rent Go Up?

A Dubai landlord can't raise the rent simply because the market feels hot. The law caps the increase, and the official DLD calculator is where you check it. If you own a unit you let out, or you rent one yourself, these rules land directly in your budget. Below I'll walk you through how the Rental Index works, the bands, how notice has to be served, and the mistakes I see most often.

How the Rental Index works

The Rental Index is Dubai's official rent benchmark. DLD calculates the average rent for comparable units in an area, then your current rent is measured against that average. The size of the gap decides whether the rent can go up at renewal, and by how much.

You run the check in the Rental Index service ↗. It sits on the DLD website and in the Ejari system, and you'll also find it in the Dubai REST and DubaiNow apps. The answer comes back straight away.

The Smart Rental Index

DLD launched the Smart Rental Index ↗ in January 2025. It covers every residential area of Dubai, special development zones and free zones included. The new version goes further than the area and classifies the building itself. Among the factors DLD lists:

• structural and technical characteristics;
• quality of finishes and maintenance;
• location;
• services and facilities such as maintenance, cleanliness and parking management;
• overall market conditions.

DLD also says the index will be updated regularly, which means any result belongs to the date you ran it. Run it close to renewal. A figure from a year earlier may already be out of date.

Using the calculator

The DLD service description ↗ sets out these steps:

1. Open the service on the DLD website or in the app and choose Rental Index.
2. Enter the expiry date of the tenancy contract.
3. Select the property type, area and number of rooms.
4. Enter the current annual rent.
5. The next screen shows the average rent and the permitted increase.

What I'd add from experience:

• Use the exact rent from the Ejari-registered contract. A rounded figure gives you a rounded answer.
• Double-check the area and property type, because one wrong field changes the result.
• Save the result with its date. If things turn into a dispute, you'll want it.
• Landlords, if the number surprises you, re-check your inputs before any notice goes to the tenant.

The bands under Decree No. 43 of 2013

The percentages come from Dubai Decree No. 43 of 2013 ↗. At renewal, the maximum increase depends on how far the current rent sits below the average for similar units:

The average comes from the Dubai rent index approved by RERA. The decree covers every landlord in Dubai, private or public, and that includes special development zones and free zones such as DIFC.

Doing the maths yourself

Here's an illustration with made-up numbers:

1. The index average for comparable units is AED 100,000 a year.
2. Your current rent is AED 75,000.
3. The gap is (100,000 − 75,000) ÷ 100,000 = 25% below average.
4. That puts you in the 21–30% band, so the cap is 10%.
5. The new rent can be no more than AED 82,500.

If your rent is no more than 10% below the average, or above it, the decree allows no increase at all. A manual estimate is fine for a rough sense of the numbers. The official answer only comes from the DLD calculator, and since the Smart Rental Index factors in the building classification, the two can differ.

The 90-day notice

Say the index does allow an increase. You still have to serve notice properly.

Article 14 of Law No. 26 of 2007, as amended by Law No. 33 of 2008 ↗ says a party that wants to change the terms on renewal must notify the other party no less than 90 days before the contract expires, unless they agreed otherwise.

DLD spells out the consequence ↗. Without that notice the increase is not applied, even if the index qualifies the property.

How to serve notice

The law treats notice as a written notification, and it can be:

• sent through a Notary Public;
• delivered by registered mail;
• delivered by hand;
• or sent by another technological means approved by law.

I tell landlords the same thing every time. A chat message on its own is weak evidence, so pick a method where you can prove delivery.

Renewal and a new lease follow different rules

The bands apply when you renew with the same tenant. For a new lease, DLD's FAQ ↗ describes the index as indicative and not mandatory.

In practice, once a tenant moves out, the next rent is agreed at market level. That doesn't mean you can push a tenant out to reset the rent. Article 25 of the law limits the grounds for eviction, and wanting a higher rent isn't one of them.

Eviction for the owner's own use

One ground the law does allow is that the owner wants to live in the property, or to house a first-degree relative there. Under Article 25 of Law No. 26 of 2007 (as amended in 2008):

• eviction is possible at the end of the contract;
• the owner must show they have no other suitable property for that purpose;
• the tenant must be told the reason at least 12 months before the eviction date, through a Notary Public or by registered mail.

That's a separate process on a much longer timeline. If you're thinking of selling or moving in, raise it with your tenant early.

When the parties can't agree

Landlord and tenant disputes in Dubai go to the Rental Disputes Centre (RDC) ↗. That includes increases above the index, missing notice, eviction and other contract issues.

Before filing, gather:

• the tenancy contract registered in Ejari;
• the Rental Index result as of the renewal date;
• a copy of the notice and proof it was sent;
• your correspondence with the other side.

If you're the landlord

• Check the index four to five months before expiry. That leaves enough time to serve 90 days' notice.
• Save the calculator result with its date, as a screenshot or PDF.
• Don't build your numbers on an increase you may never get. If your rent is already at market level, the index may not allow one. There's more on this in rental yield: gross vs net.
• Register the lease. In Dubai, landlords must register lease agreements with DLD ↗.

If you're the tenant

• If an increase notice arrives, run the calculator with your own details.
• Look at the date it arrived. It should be at least 90 days before expiry.
• If the increase is above the cap or the notice came late, talk to the landlord first and show them the DLD result. If that goes nowhere, the RDC is the next step.
• Budget for the extras too. According to u.ae ↗, tenants pay Dubai Municipality a housing fee of 5% of the annual rent, added to the monthly electricity and water bills.

From my practice. For a client in Seslia Tower, I handled the snagging, connected the utilities and found a tenant. After that, the owner really has one date to watch: the 90-day window before renewal.

Where people slip up

• Giving 60 days' notice. The minimum is 90 days before expiry, unless the contract says otherwise.
• Comparing with listings. The index measures your rent against the DLD average. Portal asking prices don't come into it.
• Checking too early. DLD updates the index, so last year's result may no longer apply.
• Notifying by chat only. If you can't prove delivery, the notice is easy to dispute.
• Confusing renewal with a new lease. The bands apply on renewal, while for a new lease the index is only a guide.

The short version

• Increase caps run from 0% to 20%, depending on the gap with the index.
• Notice goes in writing, at least 90 days before expiry.
• No notice means no increase.
• For a new lease, the index is indicative.
• Disputes go to the RDC.

Letting out a unit and wondering whether the rent can go up at the next renewal? Or buying to let and working out the numbers? Message me on WhatsApp. I'll check the index for your building and tell you which dates matter. Rental-ready options are in resale and off-plan.