When a Dubai tenancy approaches renewal, one of the most common questions is whether the landlord can increase the rent—and, if so, by how much.
The answer should not be based only on advertised listings, a broker’s opinion, or the rent being requested for another property in the same area.
Dubai Land Department provides an official Rental Index service, often referred to by tenants and landlords as the Dubai Rent Increase Calculator or RERA Rental Increase Calculator. The service allows users to check the applicable rental increase and review the relevant indexed rental value by entering information about the tenancy and property.
Dubai’s Smart Rental Index also uses artificial intelligence and a building-classification system to support more accurate and transparent rental assessments. It considers factors including rental-contract values, area averages, property quality, maintenance, services, and building classification.
For tenants, the system provides a way to assess whether a proposed increase is supported by the official framework.
For landlords, it provides a regulated reference when preparing a renewal.
However, index results alone are not enough. The timing of the landlord’s notice, the contract-expiry date, and the applicable legal framework also affect whether an increase can be applied.
The Dubai Rent Increase Calculator is an online service provided by the Dubai Land Department. Its official service name is the Rental Index.
The calculator allows a customer to determine:
The service is available through:
The result is displayed immediately after the required property and tenancy information is entered.
Dubai Land Department launched the Smart Rental Index in 2025 to strengthen transparency and fairness across the residential rental market.
Unlike an index based only on general area averages, the Smart Rental Index incorporates a building-classification system and a wider range of property data.
DLD states that the index evaluates buildings using criteria such as:
The system also uses artificial intelligence and rental data to support standardized rental assessments across Dubai.
The index covers residential areas across the emirate, including principal residential districts, special development zones and free zones.
To use the official service, the customer enters details relating to the property and existing tenancy.
Dubai Land Department currently asks users to provide information including:
The system then compares the current rent with the applicable indexed average.
The permitted increase is determined according to how far the existing rent falls below that average.
The calculator does not simply compare the property with one online listing.
The Smart Rental Index draws on wider property, building and market information to produce the applicable result.
The maximum permitted increase is determined under Dubai Decree No. 43 of 2013.
The percentage depends on the difference between the property’s current annual rent and the average rental value of comparable units under the official index.
| Current Rent Compared with Indexed Average | Maximum Permitted Increase |
|---|---|
| Up to 10% below the average | No increase |
| 11% to 20% below the average | 5% |
| 21% to 30% below the average | 10% |
| 31% to 40% below the average | 15% |
| More than 40% below the average | 20% |
Under the current framework, the highest increase band is 20%, where the applicable conditions are met.
This does not mean every landlord can automatically apply a 20% increase.
The result depends on:
Assume the following:
The existing rent is approximately 23% below the indexed average.
This places the property within the 21%–30% bracket, meaning the maximum permitted increase would be 10%.
The maximum revised annual rent would therefore be:
AED100,000 + 10% = AED110,000
The landlord could not simply increase the rent directly to AED130,000 based on the indexed average.
The permitted percentage applies to the current contractual rent.
If the current rent were AED100,000 and the indexed average was AED105,000, the difference would be less than 10%. Under the official brackets, no increase would apply.
No.
A calculator result showing that a property qualifies for an increase does not automatically change the tenancy contract.
Dubai Land Department’s Smart Rental Index guidance states that the landlord must notify the tenant of the proposed increase at least 90 days before the tenancy expires. If the property qualifies for an increase but the landlord did not provide the required notice, the increase is not applied for that renewal.
The index establishes the permitted increase.
The landlord must still follow the correct renewal and notification process.
Article 14 of Dubai Law No. 33 of 2008 states that, unless otherwise agreed in the tenancy contract, a party wishing to amend any lease term must notify the other party at least 90 days before the contract expires.
This applies to changes such as a proposed rental increase.
For landlords, this means the notice should be:
For tenants, it is important to retain:
A notice sent fewer than 90 days before expiry may not support an increase for that renewal, subject to the tenancy agreement and applicable legal position.
Providing notice does not create a right to increase rent if the index does not support one.
DLD’s guidance states that an increase applies only where:
If the official result shows no permitted increase, the landlord should not rely only on:
The relevant renewal calculation should be checked using the official DLD service.
Advertised rents can be useful for understanding what landlords are currently asking for similar properties.
They do not necessarily establish the permitted increase for an existing tenancy renewal.
Listings may differ because of:
The Smart Rental Index is the official reference used to determine whether a rental increase may apply at renewal and the applicable maximum percentage.
Dubai Land Department states that the index is indicative for a new lease but is relevant when parties are in dispute regarding the increase applicable at renewal.
This distinction is important:
The Rental Index does not operate in the same way for a new tenant and an existing tenant.
For a vacant property entering into a new tenancy, the parties negotiate the annual rental value.
DLD’s guidance describes the index as indicative rather than mandatory for a new lease.
For an existing tenant, the index is used to establish whether an increase may apply and the maximum permitted percentage.
The landlord must also comply with the applicable notice requirements.
The difference prevents an existing contractual rent from being replaced automatically by the highest current asking rent in the market.
Yes.
Dubai Land Department states that the Smart Rental Index covers all residential areas in Dubai, including:
Decree No. 43 of 2013 also states that the rental-increase framework applies to private and public landlords across Dubai, including special development zones and free zones.
Where a property is subject to a specialized legal or contractual framework, the parties should verify the applicable position through official channels or obtain professional advice.
One of the major differences between the Smart Rental Index and earlier area-based approaches is the use of building classification.
DLD’s system evaluates buildings based on criteria including:
This means properties within the same broad area may receive different indexed rental assessments where their building characteristics, conditions, and services differ.
DLD also states that an owner or landlord can submit a request to update a building’s classification.
For tenants and landlords, the result should therefore be checked for the specific property rather than inferred from the area alone.
Prepare:
Use:
Make sure the information matches the registered tenancy.
Incorrect location, bedroom count, or rental value can produce an inaccurate result.
The service displays the relevant market information and the permitted increase, where applicable.
Retain:
The index may be updated, so recording when it is checked can be useful during a renewal discussion.
Ejari provides the official record of the tenancy contract.
It includes key information such as:
Dubai Land Department’s Rental Index service asks users to enter information that should correspond with the registered tenancy.
Tenants and landlords should therefore ensure that:
An incorrect Ejari record can complicate the renewal process.
Tenants should avoid accepting or rejecting the notice immediately without checking the official position.
A practical process is:
If the proposed increase exceeds the official result, the tenant can ask the landlord or property manager to revise the renewal terms.
Where the parties cannot agree, they may need to use the relevant Rental Disputes Center process or obtain legal guidance.
Landlords should:
The landlord should also consider the wider commercial position.
The maximum permitted increase is not necessarily the only possible outcome.
Tenant retention, vacancy risk, maintenance requirements, and the property’s condition may influence the renewal discussion.
The permitted percentage applies to the current contractual rent, not directly to the market average.
Properties priced within 10% of the indexed average do not qualify for an increase under the official brackets.
An eligible property may still not qualify for an increase at that renewal if the required notice was not provided.
Advertised prices do not replace the official renewal calculation.
Wrong area, bedroom or current rent data may produce an incorrect result.
The permitted percentage is a maximum. The parties may agree on a different amount within the applicable framework.
New leases and existing renewals do not operate in the same way.
The parties may negotiate renewal terms within the applicable tenancy framework.
Dubai tenancy law allows the landlord and tenant to reconsider or amend the rent before expiry. If they cannot agree, the appropriate tribunal may determine fair rent by reference to the applicable legal criteria.
Any agreed change should be:
Informal verbal agreements can create uncertainty later.
A disagreement should first be addressed through documented communication.
The tenant can provide:
If the parties cannot resolve the issue, the Rental Disputes Center is the relevant judicial body for landlord–tenant disputes in Dubai.
Before filing a dispute, tenants and landlords may wish to obtain qualified legal advice regarding:
Dubai’s rental market recorded approximately 1.38 million registered tenancy contracts during 2025, with a combined value of AED126.4 billion. New and renewed contracts both exceeded 500,000, demonstrating the scale of the emirate’s rental sector.
Within a market of this size, a consistent rental-index framework helps:
DLD has linked the Smart Rental Index to its wider goals of fairness, transparency, and sustainable market development.
The Smart Rental Index recognizes that not every building offers the same residential experience.
Construction, maintenance, facilities, location, and services can influence the classification and rental assessment.
For owners, this reinforces the importance of:
For tenants, it highlights why the indexed value of one building may differ from another within the same neighborhood.
Sobha Realty’s approach is guided by “The Art of Detail” and its Backward Integration model, providing oversight across design, engineering, manufacturing, construction and finishing.
Rental assessment and tenant appeal can also be influenced by the quality, maintenance, and consistency of the completed living environment.
The Dubai Rent Increase Calculator provides tenants and landlords with an official method for checking whether a residential property qualifies for a rental increase at renewal.
The calculation is based on the difference between:
The maximum permitted increase ranges from:
However, the calculator result is only part of the renewal process.
DLD’s guidance requires the landlord to provide the appropriate notice at least 90 days before expiry for an eligible increase to be applied.
For tenants, the appropriate approach is to verify the permitted increase before agreeing to renewal terms.
For landlords, the applicable index and notice requirements should be checked before proposing an increase.
For both parties, the renewal should be based on official information, clear communication, and accurate Ejari documentation.
A transparent rental relationship begins with a shared understanding of how the increase was determined.
Use Dubai Land Department’s Rental Index through the DLD website, Ejari, Dubai REST or Dubai Now. Enter the contract expiry date, property type, location, number of bedrooms and current annual rent.
The maximum permitted increase is 20% where the current rent falls more than 40% below the applicable indexed rental value, subject to the notice and renewal requirements.
A landlord may propose an increase at renewal where the official index supports it and the applicable notice requirements have been followed. An increase is not automatically permitted every year.
Unless otherwise agreed in the tenancy contract, a party seeking to amend the lease terms must provide at least 90 days’ notice before contract expiry.
DLD’s Smart Rental Index guidance states that an increase is not applied where the property qualifies under the index, but the landlord did not provide notice at least 90 days before expiry.
DLD states that the index is indicative for a new lease. It becomes relevant when determining permitted increases for existing tenancy renewals and where the parties disagree.
DLD states that the Smart Rental Index covers residential areas across Dubai, including free zones and special development zones.
The Smart Rental Index uses official rental data and building classification factors. Advertised asking rents do not replace the official renewal calculation.
Yes. Building classification, quality, maintenance, facilities, location, and property details can affect the indexed assessment.
Where the landlord and tenant cannot reach an agreement, disputes may be brought before Dubai’s Rental Disputes Center. Independent legal advice may be appropriate before filing.
Explore Sobha Realty’s thoughtfully designed communities across Dubai, where exceptional craftsmanship, considered planning and professionally managed residential environments designed around quality, functionality and resident experience. For tenancy renewals, always verify the latest permitted increase through the Dubai Land Department’s official Rental Index.
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