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Published on 03/22/2025

Dubai Tenants Can Reject Early Rent Hike Notices Under New Rera Index

Rent Increase Cancelled for Dubai Tenants as New Rera Index Uses AI and Building Grades; Early 5% Hike Nullified for Layan Resident

A Dubai resident renting in Layan questioned a 5% rent increase issued in December 2024—months ahead of their April 2025 lease renewal—especially since the new Rera index (effective January 1, 2025) shows no increase. The updated rental index now uses AI and building classifications (from one to five stars) for more accurate rent calculations. Despite early notices, rent adjustments are valid only at the time of renewal. Therefore, under the new index, tenants like the Layan resident can refuse the increase and maintain current rent levels.

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Landlords must provide 90 days' notice for any contract changes, and rent increases must align with the index. If tenants disagree with the proposed terms, landlords can file a case with Dubai’s Rent Dispute Committee or ask tenants to vacate at lease end.