A common misconception in Dubai is that rents for residential units only increase once every two years (bi-yearly); however, rent laws in Dubai allow landlords to increase rent annually, with certain conditions.
The confusion came from the fact that back in 2007, there was an absolute restriction on rental increases for the first two years of the tenancy. However, that was later amended in 2008.
Dubai Land Department has established a rental index that guides rental prices in Dubai. This index takes into account various factors, such as location, type of property, and market demand, to determine the average rental rate for different types of properties. The RERA index can help landlords and tenants determine if a rent increase is in line with market rates and whether it is reasonable.
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It is important to note that any rent increase must be in line with market rates and cannot be arbitrary. Landlords must also provide written notice to tenants before increasing the rent. The notice must be given at least 90 days before the increase date, giving the tenant enough time to prepare for the change.
In a nutshell, landlords in Dubai can increase rent yearly with certain restrictions
The RERA index can help determine if a rent increase aligns with market rates and provide guidance on rental prices in Dubai. It is important to remember that any rent increase must be reasonable and in line with market rates and that landlords must provide written notice to tenants before increasing the rent.
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