Is Your Rent Increase Legal? Decree 43 and the Smart Rental Index (2026)

A rent increase in Dubai is only legal if it fits the slab system of Decree 43 of 2013: the maximum permitted increase is 0%, 5%, 10%, 15%, or 20%, determined by how far your current rent sits below the average for similar properties in the Smart Rental Index, and the landlord must give 90 days' written notice before renewal. If either condition fails, you can refuse the increase.

That single paragraph resolves most renewal disputes, but the details matter, especially since the Smart Rental Index launched in January 2025 and started rating individual buildings rather than whole neighbourhoods. Here is how the system works and what to do if your landlord's number does not comply.

Before anything else, run your own numbers through the RERA Rent Increase Calculator. It applies the Decree 43 slabs to your property and tells you in about a minute whether the proposed increase is legal, and if not, what the legal maximum is.

What are the Decree 43 rent increase slabs?

Decree 43 of 2013 caps the increase a landlord may demand at renewal based on the gap between your current rent and the average market rent for similar properties:

Your current rent vs market average	Maximum legal increase
Less than 10% below	0% (no increase allowed)
11% to 20% below	5%
21% to 30% below	10%
31% to 40% below	15%
More than 40% below	20%

Worked example: you pay AED 80,000 and the Smart Rental Index average for comparable units in your building is AED 100,000. Your rent is 20% below market, which falls in the 11 to 20% slab, so the maximum legal increase is 5%: your new rent can be at most AED 84,000. If your landlord demands AED 95,000, that is not a negotiation position, it is simply illegal, and the increase they can enforce is AED 84,000.

Note what the slabs also imply: even a tenant paying 50% below market can only be increased 20% per year. Long-sitting tenants converge to market slowly, by design.

What is the Smart Rental Index and how do building ratings work?

Launched by the Dubai Land Department on 2 January 2025, the Smart Rental Index replaced the old area-wide index with building-level valuations. Each building receives a classification based on a scored assessment of its technical and structural condition, quality of finishes and maintenance, location, and the services and facilities available, alongside market data.

The practical consequences:

Two towers on the same street can have different permitted rents. A well-maintained building with good facilities carries a higher index value than a neglected one next door.
Landlords who want higher rents need better buildings. The index is intended to push maintenance and quality, since an upgraded classification is now the legitimate route to a higher valuation.
Your "market average" is more precise. Under the old index, landlords argued their unit was above the area average; now the index speaks for your building specifically. You can look up your building through the Dubai REST app or the DLD website.

The index is also a house-hunting tool: before you sign anywhere, check how the asking rent compares with the index value, and see our guide to the full cost of a Dubai move in Renting in Dubai: your real move-in cost.

What is the 90-day notice rule?

Under Article 14 of Law 26 of 2007 (as amended by Law 33 of 2008), any party wanting to amend the terms of a tenancy contract, including the rent, must notify the other party at least 90 days before the contract expires, unless the parties agreed otherwise.

In practice:

No notice, no increase. If your landlord first mentions an increase 45 days before expiry, you are entitled to renew at the old rent for the coming year, even if the increase would have been within the Decree 43 slab.
Notice should be provable. Registered mail, notary notice, or email or messages you can evidence. A verbal remark from the building watchman does not count.
The rule cuts both ways. If you want to negotiate the rent down or change payment terms, you are also expected to raise it 90 days out.
Silence usually means automatic renewal on the same terms. Tenancies in Dubai renew by default; a landlord cannot evict you at expiry simply to re-let at a higher rent, as eviction requires separately defined grounds and 12 months' notarised notice in cases like sale or personal use.

How do you dispute an illegal rent increase?

Check the numbers. Run the RERA calculator and screenshot the result. Verify the 90-day notice date against your contract expiry.
Push back in writing. Send the landlord the calculator output and state you will renew at the legal rent. A large share of disputes end here, because the landlord knows what the RDC will decide.
Renew anyway if talks stall. Pay the undisputed (legal) rent. Refusing to vacate while a dispute is live is your right; do not be pressured out.
File at the Rental Disputes Centre (RDC). The RDC, established by Decree 26 of 2013, is the judicial arm for Dubai tenancy conflicts. Filing costs 3.5% of the annual rent, with a minimum of AED 500 and a maximum of AED 20,000, plus small administrative fees. You will need your Emirates ID, passport and visa copies, Ejari certificate, the tenancy contract, and evidence such as the notice and correspondence; documents must be in Arabic or officially translated. Most first-instance cases are decided within weeks, and mediation is attempted first.

On an AED 80,000 tenancy, a dispute filing costs AED 2,800. If the landlord is demanding AED 15,000 more than the legal maximum, that fee pays for itself several times over, and the RDC can award it back as costs.

Is it ever worth accepting an above-slab increase?

Occasionally, yes. If you are massively below market, the landlord has legitimate eviction routes (12-month notarised notice for sale or personal use) and may use them. Accepting a negotiated increase above the slab, in exchange for a two or three-year fixed term, can be rational if moving would cost you more; remember a Dubai move costs 10 to 15% of annual rent in fees and deposits. Run the totals for both scenarios, and if the rent trajectory in your emirate is the deciding factor, compare alternatives in Dubai vs Abu Dhabi vs Sharjah, or check whether the math has tipped toward ownership in rent vs buy in the UAE.

FAQ

Can my landlord increase the rent every year in Dubai?

Only if the Decree 43 slabs allow it each year. If your rent has converged to within 10% of the Smart Rental Index average, the legal increase is zero, no matter how many years pass. Each renewal is tested against the index fresh, with 90 days' notice required every time.

Does the rent cap apply to new contracts?

No. Decree 43 governs renewals with an existing tenant. A landlord can list a vacant unit at any price the market bears. This is why long-sitting tenants often pay well below what new neighbours pay, entirely legally.

Are free zones like DIFC covered by Decree 43?

DIFC has its own leasing law and is outside RERA's rental index regime, and some other free zone or master community arrangements differ in detail. Most residential areas of Dubai, including popular free zone communities registered through Ejari, follow the standard Decree 43 framework. If your lease is in DIFC, check the DIFC Leasing Law separately.

What if I already signed the renewal at an illegal increase?

Signing weakens but does not always end your position. The RDC has discretion over contracts that conflict with Decree 43, but outcomes vary once you have agreed in writing. The far better path is to check the increase with the calculator before signing, and file or negotiate within the renewal window.

Sources and References

Dubai Land Department, Decree 43 of 2013 rent increase slabs (0/5/10/15/20%) and the Smart Rental Index launched January 2025 with building-level classification (dubailand.gov.ae)
Government of Dubai, Law 26 of 2007 as amended by Law 33 of 2008, Article 14 (90-day notice for amending tenancy terms) and eviction grounds (dubailand.gov.ae)
Rental Disputes Centre, established by Decree 26 of 2013; filing fee of 3.5% of annual rent, minimum AED 500 and maximum AED 20,000 (rdc.gov.ae)
Property Finder, RDC filing process, fee confirmation, and required documents (propertyfinder.ae)
The National, Smart Rental Index launch and building rating criteria coverage (thenationalnews.com)

This article is for general information and does not constitute legal advice. Rent regulations, index values, and dispute fees change and individual cases turn on their facts, so verify current rules with the Dubai Land Department or the Rental Disputes Centre and consult a licensed professional for your specific situation.

Published on 9 September 2026.