How Dubai Decree 43/2013 limits a rent increase at renewal, how the five bands are applied, and how to check a deal in TenancyDesk.
In Dubai, how much the rent may rise at renewal depends on how far the current rent sits below the average rent for similar units in the RERA Rental Index. The rule is Dubai Decree No. 43 of 2013, Article 1.
The five bands
| Current rent vs the index average | Maximum increase |
|---|---|
| Less than 10% below (or at or above it) | 0% |
| 11%–20% below | 5% |
| 21%–30% below | 10% |
| 31%–40% below | 15% |
| More than 40% below | 20% |
The decree prints the bands in whole numbers. TenancyDesk applies them without gaps: up to and including 10% below → 0%; above 10% up to and including 20% → 5%; above 20% up to 30% → 10%; above 30% up to 40% → 15%; above 40% → 20%.
Worked example: index average AED 100,000, current rent AED 85,000 → 15% below → band 11%–20% → up to 5% → AED 89,250.
Notice of the increase
Changing the rent is a change of the contract's terms. Law No. 26 of 2007, Article 14: the party who wants the change notifies the other no less than 90 days before the contract expires — "unless otherwise agreed", so the contract itself can set a different period.
Whose figure is binding
The binding figure is the one in Dubai Land Department's own Rental Index. TenancyDesk compares your rent against the median of recent registered Dubai rent contracts for the same area and unit size; its figures are estimates.
In TenancyDesk
On a Dubai deal, the Compliance tab has a rental-index block. Choose the area and the property type, enter the current rent and press Check Rent Increase Legality. You see the area figure, how far the rent is below it, the maximum increase and the maximum rent; the check is saved with the deal. When a deal is renewed with a higher rent, an increase above the band is flagged on the deal.
Step by step
- 1
Know the rule
Decree 43/2013: the maximum increase depends on how far the current rent is below the index average — five bands, from 0% to 20%.
- 2
Find the gap
Compare the current rent with the index average for the same area and unit type. The binding figure is in DLD's own Rental Index.
- 3
Check it on the deal
Compliance tab → Check Rent Increase Legality: the band, the maximum increase and the maximum rent, saved with the deal.
- 4
Give notice in time
Law 26/2007 Art 14: notify a change of terms at least 90 days before the contract expires, unless the contract says otherwise.
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