Updated October 2026. Notice periods, rent increase limits and dispute fees checked against Dubai Law No. 26 of 2007 (as amended by Law No. 33 of 2008), Decree No. 43 of 2013 and Dubai Land Department guidance.
Tenancy renewal in Dubai is where most rent questions come up: can the landlord raise the rent, by how much, and what happens if you cannot agree? The short answer is that any change needs 90 days’ notice and any increase must be allowed by Dubai Land Department’s Smart Rental Index. Here are the things to check before you renew a tenancy in Dubai in 2026.
1. Has the 90-day notice been given?
If either the landlord or the tenant wants to change the terms at renewal, including the rent, they must notify the other at least 90 days before the contract ends, unless the contract says otherwise (Article 14 of Law No. 26 of 2007, as amended). DLD has confirmed that if a landlord’s notice of a rent increase is late, the increase cannot be applied at that renewal, even if the index would have allowed it.
Notice should be in writing, by email or letter, so there is a record of the date. Diarise your expiry date and the 90-day mark when you sign the lease.
If no one gives notice and you stay on after expiry without objection, the law treats the lease as renewed on the same terms, for the same period or one year, whichever is shorter.
2. How is a rent increase calculated in Dubai?
Rent increases are governed by Decree No. 43 of 2013. The maximum increase depends on how far your current rent is below the average rent for similar units in the official Rental Index:
| Your rent compared with the index average | Maximum increase |
|---|---|
| Up to 10% below | No increase allowed |
| 11% to 20% below | 5% |
| 21% to 30% below | 10% |
| 31% to 40% below | 15% |
| More than 40% below | 20% |
Example
You pay AED 90,000 a year and the index average for your unit type is AED 110,000. Your rent is about 18% below the average, which falls in the 11% to 20% band, so the maximum increase is 5%. Your new rent can be up to AED 94,500. A higher asking price on a similar listing does not change this.
The percentage is applied to your current rent, not to the market rate, and it is a ceiling, not an automatic rise.
3. What changed with the Smart Rental Index?
The old RERA rental calculator was based on area averages and updated about once a year. In January 2025 DLD replaced it with a new digital Smart Rental Index. The increase bands above did not change, but the average they are measured against did.
- Building ratings. Each building is classified using a star rating that reflects its condition, maintenance, facilities and location. An older or poorly maintained building in a prime area is not benchmarked against new towers next door.
- Live data. The index uses current registered rents rather than a once-a-year update.
- Which index applies. The index in force on your renewal date applies, not the one from when you first signed.
- Where to check. Use the Rental Index on the DLD website or in the Dubai REST app. You enter your contract expiry date, property type, area, number of bedrooms and current annual rent, and it shows the maximum permitted increase.
Save a screenshot of the result with the date. It is useful evidence if you need to negotiate or go to the Rental Disputes Centre.
4. Is there room to negotiate?
Usually, yes. The index sets a maximum, not a target, and many landlords prefer a reliable tenant to an empty unit. Things you can negotiate at renewal include:
- A smaller increase than the index allows, or none at all
- More cheques, or fewer cheques in return for a lower rent
- Repairs, repainting or appliance replacements before the new term
- A longer contract at a fixed rent
It also helps to compare what similar homes rent for now. Browse properties for rent to see current asking rents in your area.
5. Do I need to renew Ejari?
Yes. Every renewed contract must be registered with RERA through Ejari, just like a new lease. You will need the renewed tenancy contract, Emirates ID and the title deed details. The fee is about AED 175 online through Dubai REST or about AED 220 at a trustee centre, and the tenant usually pays. Without a valid Ejari you may have trouble renewing family visas and DEWA, and the Rental Disputes Centre requires a registered contract.
6. Can my landlord refuse to renew?
Not freely. A landlord can only recover the property at the end of the lease on specific legal grounds, and must give at least 12 months’ notice through a notary public or by registered mail. The grounds are:
- The owner wants to sell.
- The owner or a first-degree relative needs to live in it and has no other suitable home.
- The property is being demolished or reconstructed, with the required permits.
- Restoration or major maintenance is needed that cannot be done with you living there, confirmed by a Dubai Municipality report.
A landlord who takes a home back for personal use cannot rent it to anyone else for at least two years. Wanting more rent than the index allows is not a valid reason to end your lease.
7. Check the deposit, cheques and condition
- Security deposit: it normally rolls over to the new term. If the rent rises, the landlord may ask you to top it up to match.
- Cheques: agree the new payment schedule in writing and replace any post-dated cheques for the new term.
- Maintenance: unless your contract says otherwise, the landlord is responsible for maintenance during the lease. Raise outstanding issues before you sign.
- Other costs: you will still pay DEWA and the Dubai Municipality housing fee of 5% of annual rent through your DEWA bill.
8. What if we cannot agree?
Disputes over renewal, rent increases or eviction go to DLD’s Rental Disputes Centre (RDC). Cases can be filed online or at a trustee centre, and the RDC offers an amicable settlement stage before a hearing.
For an eviction, renewal or termination case the filing fee is 3.5% of the annual rent, with a minimum of AED 500 and a maximum of AED 20,000, plus small service fees. You will need your Ejari-registered contract, Emirates ID, copies of notices and any correspondence. Many renewal disputes settle quickly once both sides see the index figure and the notice dates.
Getting help from Houzon
Houzon is a RERA-registered agency rated 4.9 on Google from more than 280 client reviews. If you are a tenant looking for a new home, start with our rental listings. If you own a rental, our property management team handles renewals, rent index checks, notices and Ejari for you.
Frequently asked questions
How much notice does a landlord need to give for a rent increase in Dubai?
At least 90 days before the contract expires. If notice is given late, the increase cannot be applied at that renewal.
What is the maximum rent increase in Dubai in 2026?
The maximum is 20%, and only when the current rent is more than 40% below the Rental Index average. Most increases are capped at 0%, 5%, 10% or 15% depending on the gap.
Has the Smart Rental Index replaced the RERA rental calculator?
Yes. Since January 2025 DLD’s Smart Rental Index, which rates buildings individually, sets the average used to calculate increases. The percentage bands under Decree No. 43 of 2013 are unchanged.
What happens if I stay after my lease expires without renewing?
If neither side objects, the lease is treated as renewed on the same terms for the same period or one year, whichever is shorter.
How much does it cost to file a rent case at the Rental Disputes Centre?
For eviction, renewal or termination cases, 3.5% of the annual rent, with a minimum of AED 500 and a maximum of AED 20,000, plus small service fees.
Thinking of buying, selling or renting in Dubai?
Speak to a Houzon agent who knows the community, or browse what is on the market today.
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