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Dubai landlords can increase rent up to 20% under new guidelines

Villas in Dubai. Photo: Donna.M.Bee.Photography

Landlords in Dubai will be able to increase rents by up to 20% following a new decree by Dubai's Sheikh Mohammed bin Rashid Al Maktoum issued  late on Saturday.

The new ruling sets the maximum rent hikes on properties, depending on current market rate.
Landlords can increase rent under the following guidelines:

  • If rent is less than 10% of market rate, there will be no increase.

  • If rent is 11-20% less than market rate, the maximum rent increase should be 5%.

  • If rent is 21-30% less than market rate, the maximum rent increase should be 10%.

  • If rent is 31-40% less than the market rate, the maximum rent increase should be 15%.

  • If rent is more than 40% below market rate, the maximum rent increase should be 20%.

The move applies to public and private secotrs in Dubai including private development areas and free zones, according to the official statement. The property market rate is to be determined by the Real Estate Regulatory Agency's (RERA) rent index.

Expo 2020: What the win means for property market

The new rules were released in a effort to control the property rental market following Dubai's Expo 2020 win last month, state agency WAM said.

Dubai Government issues a statement encouraging RERA to continue regulating the rental market and  to enforce laws on all rental properties irrespective of ownership whether private, commercial, or government.

“The Expo win is a gift to the people of this country and this Emirate,” said Sheikh Ahmed bin Saeed Al Maktoum, chairman of the Dubai Supreme Fiscal Committee and head of the Expo bid higher Committee.

“It is now all our duty to ensure that Dubai continues to offer great opportunity for business and living.”

Dubai earlier announced up to 30-100% wage increase for public sector employees effective December 2013.