How much can a Dubai landlord raise the rent on renewal?

The bands

Article 1 of Dubai Decree 43 of 2013 sets the maximum increase on renewal in five bands against the average rent of comparable property. No increase where the current rent is less than 10% below that average; 5% where it is 11% to 20% below; 10% where 21% to 30% below; 15% where 31% to 40% below; and 20% where it is more than 40% below. The decree states the bands as written, including the gap between 10% and 11%.

Raising a change before expiry

Article 13 of the Dubai Tenancy Law lets either party, before the lease expires and for the purpose of renewal, propose a change to any term or a revision of the rent up or down. If they do not agree, the committee named in the law sets a fair rent using the criteria in Article 9. Article 14 requires the party who wants a change to notify the other at least ninety days before the lease expires, unless the parties agree otherwise.

When no rent is fixed

Article 9 says the parties must state the rent in the lease; where they leave it out or cannot prove what they agreed, the rent is the rent of the like. The committee sets that figure taking into account the rent-increase criteria set by the authority, the general economic situation in the emirate, the condition of the property, the prevailing rent of similar property in the same area and any other factors it considers.

A renewal clause that lets the landlord set the new rent alone, with no reference to these bands or to notice, is wider than the articles allow.

Questions

What is the maximum rent increase in Dubai?

Up to 20%, and only where the current rent is more than 40% below the average rent of comparable property; smaller gaps carry smaller caps and a gap under 10% carries none (Article 1, Decree 43 of 2013).

How much notice is needed to change the rent?

Article 14 of the Dubai Tenancy Law requires notice at least ninety days before the lease expires, unless the parties agree otherwise.

Who decides if the landlord and tenant cannot agree?

The committee named in the law sets a fair rent using the criteria in Article 9 (Article 13).