Saturday 19 October 2019 (UAE)

Dubai rent cap 2019

Dubai rent cap and rent index

This page is about the rent cap in Dubai. See also Dubai rental laws page. For information about ownership laws see the Dubai property ownership laws page.

Dubai rent increase laws 2013-2014, new rent cap, rent cap applies in DIFC

The new Dubai rent increase law for 2013-2014 announced 22 Dec 2013 appears to be similar to the new law issued in 2009, but with revised ranges for differences between actual rent and average market rents used for deciding the maximum rent increase permitted. The resulting increases expected are probably still not going to be so outrageous. Don't panic ... Unless even if you live in DIFC where the rent caps don't ... might not ... do apply according to the 2013 Decree.

The rent cap law in Dubai applies to residential and commercial properties - Law No 33 of 2008 has the following definition of Property ("Real Estate" in Law No. 26 of 2007): Immovable property and its annexures rented for residential, commercial or professional purposes or any other legal activity.

Details of new rent increase law for Dubai (21 Dec 2013)
Difference between market rent and your rent 0%-10% 11%-20% 21%-30% 31%-40% 40%+
Maximum rent increase permitted none 5% 10% 15% 20%
Examples          
Average market rent (AED) 100k 100k 100k 100k 100k
Actual rent range for rent cap 100-90k 89-80k 79-70k 69-60k <60k
Your rent (AED), for example 95,000 89,000 75,000 61,000 59,000
Maximum rent increase allowed 0% 5% 10% 15% 20%
New maximum rent on contract renewal 95,000 94,500 82,500 70,150 70,800

DIFC rent cap or no rent cap?

Article 2 of Decree No. 43 of 2013, issued in Dubai on 18th December 2013 (On Determining the Increase in the Real-Estate Rentals in the Emirate of Dubai) says "The present Decree shall apply to all landlords of the public and private authorities in the Emirate of Dubai, including the special development areas and the free zones, including Dubai International Financial Center."

Abu Dhabi rent cap abolished removal cancellation annulment 2013

Dubai rent cap 2010

According to a WAM announcement 31 December 2009, the rent cap applied in Dubai in 2009 will remain in place for 2010, i.e. the applicable rent cap will be between 0% and 20% depending on your rent relative to the Dubai rent index published by RERA - "For properties rented in 2009 and before, the maximum increase in rent value shall be set as per the previous relevant similar decree for 2009." See 2009 rent cap section below for details of rent cap levels.

Dubai rent cap 2009

Dubai rent cap and rent calculator 2009

The 2009 rent cap for Dubai was set at 0% unless your current rent is well below the RERA rent index rates. Use this calculator to calculate the rent cap that applies if your rent is below market rate, and to calculate the rent you might pay in 2009 (more detailed explanation below the calculator).

  1. From the RERA rent index, look up the rent band for the area and type of accommodation where you live.
  2. Enter upper and lower limits e.g. if band is 90-120, enter 90,000 for lower limit and 120,000 for upper limit.
  3. Enter the rent you were paying after last contract renewal in 2008, then press the calculate button.
look up average rents
from the RERA rent index
Lower market rent AED What is your 2009 rent? AED
Upper market rent AED  

Our understanding is that the 2009 Dubai rent cap is effectively 0%, 5%, 10%, 15%, or 20% depending on what the 2008 median rental price is for the area and type of accommodation in which you live, as indicated by the RERA rent index.

WAM (the official UAE news agency) reported on 19 January 2009 that decree number (1) for 2009 was issued for "halting any increase in residential and non-residential property rent values in 2009 for the tenants who renew their contracts signed in 2008." The phrase "halting any increase" is probably what caused great excitement amongst tenants who thought their rents would be frozen. But the WAM report then said that applied only to rents above a rent level 25% below the RERA rent index average price for the respective property. For rents cheaper than 25% below the RERA indicator the decree "defines a new formula for lower rent values which allows a proportional increase in rents for 2009." The rent index is based on rents in the second half of 2008 which were pretty much peak rental prices in Dubai. If you have questions, ask them in the UAE rent cap forum topic and we'll do our best to answer them.

03 May 2009 - RERA rent index values were reset to 2008 H2 levels for but then set back to the 2009 Q1 updated values that first appeared 29 April 2009.

Example of possible rent increases in Dubai for 2009

You live in a two bedroom apartment in Al Garhood. The rent index has rental band as AED 125,000-135,000 per year which means the median rent is AED 130k per year. If your rent is:

Previous rent caps and other UAE rent caps

Year Abu Dhabi Ajman Dubai Fujairah Sharjah RAK UAQ
2014 none   0%-20%        
2013 5% none*            
2012              
2011       5% (31 Jan 2011)      
2010 5%   0%-20%        
2009 5%   0%-20%        
2008 5%   5%     5%-15%  
2007 7% 20% 7% 15% 0%   10%
2006     15%        
Last update Friday 07-Aug-2015
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www.dubaifaqs.com/rent-cap-dubai.php (PDF and print version).

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