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Looking For Property In Dubai? Updated Rules by RERA for Rental Increments and Index for Dubai 2024

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The new rules on rental increases on property in Dubai have been declared and adopted by the Dubai Real Estate Regulatory Agency (RERA) which functions within the framework of the Dubai Land Department (DLD) and the new Rental Index for 2024 has also been unveiled.

These are intended to override the current irrational relationship between tenant and landlord, and to foster more stability as well as growth of the real estate market in Dubai.

With rental increases set in conjunction with today’s market value reflected in the recently established Rental Index, these rules seek to strike a balance between equally beneficial solutions for the landlords and tenants. It will now be updated on bi-annual basis only so as to maintain the updatability in the fast tuned rental market scenario of Dubai.

No Rental Increase for Certain Leases

As a result of the new rules, property In Dubai that is within the median market rent or lower, based on the latest Rental Index, or up to 10% below the index, will be able to experience no rental uplift. This rule is especially helpful if a tenant is renting property that is already very close to the existing median standards of the market.

Thus, preventing the rental increase in this category, RERA will retain the affordability and long-term stability of the UK housing stock for a major segment of renters. Paying rent on a sliding scale ensures that the tenant has control over their expenditure in regards to their living space, aided by the fact that exponential increases in rent can be financially destabilising.

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Maximum 5% Increase for Moderately Priced Property In Dubai

For Dubai properties that are priced between the median market rent and 11 percent and up to 20 percent below the median market rent, the new rules allow a maximum increase in the rent to be 5 percent. This moderate escalation is fair to both the landlords so that they can be upright in charging their tenants reasonable and fair rent as well as protecting tenants from getting outrageous shocks just because their landlords have done market research indicating that they can fix outrageous prices.

The rationale used for implementing this limit is used in defining a mechanism that provides landlords with a way of gradually adjusting their rates upwards to match the median market rates without over burdening tenants.

10% Increase for Lower Priced Leases

This particular type of lease, which falls at between twenty-one percent and thirty percent below the median market rent, can be subject to a maximum rental hike of ten percent as preferred under the new rules. This rule enables the landlord to make sizable changes to the rent although the property for rent in Dubai is considerably less than the median market rent. This provision has the aim to assist landlords to move these underpriced leases in the right direction and make them more reasonable while, at the same time, accommodating the wishes of tenants to avoid a sharp rise in costs.

In a situation where landlords seek to let their properties for rent below the median market rent by 30% or below, are allowed to impose a rental increment not exceeding 15%. This rule applies to situations where the lessor charges below-average prices relative to similarly leased space in an area.

The purpose of this guideline is to enable landlords to make sufficient rectifications to the existing bias in their income from rents, while at the same time ensuring that tenants are afforded protection against exorbitant hikes in costs. By allowing a 15% increase, RERA equally ensures these leases can gradually come closer to present market values.

Where a lease of a dwelling is let at a rent that is less than or equal to 40 % of the median market rent, new rules allow a rent increase of a capped amount of 20%. This provision applies more to leases whose initial rent is drastically cheaper to offer landlords adequate room to increase the actual rent charged much nearer to the current market rate.

For such a large increase it is important to utilise significant amounts because extreme imbalances exist within the rental market, to improve the accuracy of rental pricing and more closely relate it to today’s market.

RERA’s Commitment to Fairness

The guidelines established by RERA underscore its need to accommodate the requirements of both renters and property owners in Dubai’s rental sector. By linking rental hikes to market rates, RERA safeguards tenants from being charged exorbitant rent when a new and cheaper stock is not immediately available on the market while also protecting landlords from stagnation in their rental income when the market price rises. These updates are expected to set a timely and equitable rental market whereby the rental prices are subject to revisions in accordance with the prevailing market trends.

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How to Stay Informed Of Property In Dubai?

These changes can be evidently managed to bring the necessary amendments by landlords and tenants as well as consult the updated Rental Index frequently on the official Dubai Land Department website. Thus, it helps to keep up with such changes and think about how they may potentially affect rental contracts and budgeting. Surfing through the website, one is able to find very useful practical information that will enable both parties to understand the new guidelines better and make any required changes.


The changes, such as the new rules established by RERA for rental increments, as well as the introduced Rental Index for 2024, can be viewed as steps toward establishing a fairer and balanced real estate market in Dubai. It is through the use of rental increases and adoption of the Rental Index that has been adopted by RERA as means of offering bi-annual updates that several benefits that follow from the stable and credible rental market are offered to both tenants and landlords. These measures ensure equitable proportion, prevent fluctuations, and contribute to the betterment of Dubai’s property market. The changes are thus inevitable and the only way to adapt to them effectively is by consulting with professional real estate brokers in Dubai to buy property in Dubai from the right sources of information.

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