Rents in Dubai: New Rules Explained
Been worrying about a possible hike in rents in Dubai in 2014? Running scared that you might be homeless as the UAE heads towards Expo 2020? Well, the law's here to cap the increase that landlords can enforce on renewal.
New rules for rent hike caps came into effect on 21 December 2013, following a decree by Ruler of Dubai, UAE Vice President and Prime Minister His Highness Sheikh Mohammed bin Rashid Al Maktoum. The Dubai government also issued a statement focussing on the importance of abiding by the rules and regulations set by rent authority RERA.
So what are the new rules and what do they mean for you? Read on...
The new rental slab means landlords cannot raise rents on renewals if the current lease is only 10 per cent lower than the average rent of a similar property.
Meanwhile, landlords can raise rents on renewals as below:
- 5 per cent if the earlier rental is 11 to 20 per cent lower than the average rent for a similar property;
- 10 per cent if the rental is 21 to 30 per cent lower than the current going rates for properties of a similar scale;
- 15 per cent if the rent is as low as 31 to 40 per cent than comparable ones; and
- 20 per cent if a property’s rental is more than 40 per cent less than the average.