Dubai Landlords Must Give 90-Day Notice Before Rent Hikes

Due to a major update to the city’s rental regulations, landlords must give tenants at least 90 days’ notice before increasing rent, or the hike won’t take effect - no exceptions.

This new rule is part of the Smart Dubai Rental Index, initially launched on January 2nd, which changes how rent adjustments are calculated across the city. Unlike the previous system, which was updated yearly by zone, the new index uses AI to track real-time market values for each building, covering both freehold and non-freehold areas.

Dubai’s rental market has been expanding rapidly, with an 8% rise in registered leases last year alone. The city’s population boom and growing demand for housing have made rent increases a key concern for residents. Officials say the new index could cut rental disputes by 20%, giving tenants a clearer picture of what they should be paying.

The system also determines whether a rent hike is allowed at all. If a property’s current rent is within 10% of the area’s market value, no increase is permitted. If it falls between 11% and 20% below market value, landlords can raise rent by up to 5%, with larger increases possible for lower-priced units.