Rent increase, decrease related to real estate properties are decided by Dubai Real Estate Regulatory Agency based on a calculator it developed and operates.
Question: Can you explain how the Dubai Rental Index works? I received a rent increase notice that I consider unfair. What should I do next? How can I dispute it and how does it work aafterward
Answer: Based on your questions, given that you are staying in a rented apartment in Dubai, the provisions of Law No. 26 of 2007 governing relations between landlords and tenants in the Emirate of Dubai (the Dubai Rental Law) and Law No. 33 of 2008 Amending Law No. 26 of 2007 Governing Relations between Landlords and Tenants in the Emirate of Dubai (the "Amended Dubai Rental Law") shall apply. The increase and decrease of rent related to real estate is determined by the Dubai Real Estate Regulatory Agency (Rera) based on a rent calculator it has developed and uses.
Section 10 of the Dubai Tenancy Act states, "Rera is empowered to set criteria relating to the rate of rent increase in the Emirate in accordance with the requirements of the prevailing economic situation in the Emirate."
Based on the aforementioned legal provision, you can check the rental value of your apartment via the Rera rent calculator on the Dubai Land Department website.
If you feel that the rental price of a comparable apartment in your area of residence does not match what has been offered to you, you can contact your landlord or real estate agent and inform them of this.
If the landlord or broker disagrees, you can go to the Dubai Rental Dispute Center (RDC) and file a complaint. Based on your complaint, the DRC may summon your landlord and or real estate company to determine the rent on your apartment due to the renewal of the lease. This complies with Section 13 of the Dubai Tenancy Act as amended, which states: "In order to renew a lease, the lessor and lessee may, prior to the expiration of the lease, amend its terms and reconsider or reduce the rent. If the landlord and the tenant do not agree on this point, the court may determine the appropriate rent, taking into account the criteria set out in article 9 of this law.