Dubai RERA Rent Index 2026: How Renewal Caps Actually Work

Most Dubai landlords think the RERA rent index gives them an automatic right to raise rent each year. Most tenants think any increase is capped at 5%. Both are wrong. The mechanism — set out in Decree No. 43 of 2013 — is a five-tier formula that compares the tenant's current rent to the RERA index for the same building or area. The cap depends entirely on how far below market the existing rent sits. Above-market or at-market rents have a 0% increase cap; deeply below-market rents can be raised by up to 20%.

The five-tier formula

Decree No. 43 of 2013 sets the following renewal caps based on the gap between current rent and the RERA index value for the same property type and area:

• Current rent ≥10% below market average → maximum 5% increase.
• Current rent 11–20% below market average → maximum 10% increase.
• Current rent 21–30% below market average → maximum 15% increase.
• Current rent 31–40% below market average → maximum 20% increase.
• Current rent more than 40% below market average → no cap (negotiable).

If the current rent is at or above the market average for comparable units, the landlord cannot raise it at all on renewal. This is the part most landlords misunderstand: there is no automatic right to increase rent year-on-year.

How to read the RERA index

The RERA rent index is published via the Dubai REST app and on the Dubai Land Department website. It is structured by community and unit type (studio, 1BR, 2BR, etc.). The figure shown is a range — typical low to typical high — for the area/unit combination.

For a renewal calculation, the relevant figure is the mid-point or the closest match for your specific building. The index does not differentiate floor, view, fit-out, or specific tower within a community; in disputes, the RDSC interprets the index relative to "comparable units" with reasonable adjustments for these factors.

Notice requirements

A landlord must give the tenant written notice of any rent increase at least 90 days before the lease expiry date. Notice can be delivered through registered means (notary, registered mail, court bailiff) — the tenant must receive the notice with documentary proof.

If notice is not given 90 days in advance, the lease renews at the existing rent. This is one of the most common landlord errors — quoting a higher rent at the renewal date without prior notice is unenforceable.

The tenant's right to challenge

If a tenant believes the proposed increase exceeds the Decree 43 cap, they can file at the Rental Disputes Settlement Centre. See our RDSC process guide. Typical case timeline: 30–60 days for a first-instance decision.

The RDSC uses the RERA index as the authoritative benchmark. The landlord's market evidence (recent leases in the same building, current Bayut listings) is admissible but does not override the index.

Common disputes

• Landlord claims building-specific premium that the index understates. RDSC may accept a 5–10% adjustment for verifiable factors (high floor, sea view, premium fit-out) but rarely more.
• Index range gives wide latitude. RDSC typically uses the mid-point unless one party brings strong evidence for the high or low end.
• Notice timing dispute. If the landlord cannot prove the 90-day notice was delivered, the existing rent stands.
• Tenant refuses any increase. If a valid Decree 43 increase has been correctly noticed, the tenant cannot block it — they can either accept or vacate at lease end.

Eviction notice — the separate question

Rent increase is one issue; eviction is a different statutory mechanism. A landlord cannot evict a tenant simply because the tenant refuses a rent increase. Eviction requires 12 months' written notice through notary or registered means, and only on specific grounds (landlord's own use, sale, major reconstruction, breach by tenant). The grounds are narrow and the documentation requirements are strict — see Law No. 33 of 2008.

Annual updates to the index

RERA updates the index annually, typically at the start of each calendar year. In rare cases, mid-year updates are issued for specific communities undergoing rapid change. Landlords and tenants should re-check the index at each renewal calculation — last year's number does not apply.

Practical implications for landlords and tenants

For landlords: the rent you negotiate at lease start determines your forward upside. A unit let well below market gives you a multi-year renewal-cap stairway up; a unit let at or above market gives you no upside on renewal. Use the rental yield calculator to model the income trajectory under realistic renewal caps.

For tenants: the index is your protection. Know it before renewal negotiations. If the proposed increase exceeds what Decree 43 permits, the RDSC route exists.

Common landlord and tenant errors

• Quoting a rent increase without 90-day notice. Unenforceable; existing rent renews.
• Ignoring the index because "market has moved". The index is the rule; market evidence is supporting context only.
• Confusing rent-increase cap with eviction. Different mechanisms, different notice requirements.
• Assuming a verbal agreement on rent overrides the cap. Written notice + Ejari registration are the documentation that matters.
• Failing to register Ejari. Without Ejari, DEWA connection and visa renewals don't work and disputes get harder.

Practical next steps

1. Pull the current RERA index value for your specific community and unit type before any renewal negotiation.
2. Compare against actual current rent. Compute the gap %.
3. Apply the Decree 43 five-tier formula to find the maximum permitted increase.
4. Issue or respond to notice 90+ days before expiry.
5. If a dispute arises, file at the RDSC promptly — see our RDSC guide.