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Mohammed issues decree on rent increases
30 December 2009
In his capacity as the Ruler of Dubai, UAE Vice President and Prime Minister His Highness Sheikh Mohammed bin Rashid Al Maktoum has issued a decree governing increases in rental prices in the emirate of Dubai.
The decree reflects Sheikh Mohammed's eagerness to ensure stability in the emirate's real estate market, while simultaneously improving legislation to boost clarity between landlords and tenants. The decree applies to UAE nationals and foreign residents equally.
The new regulations prevent increases in rents during 2010 for tenants who are renewing rental contracts signed in 2009, except under clearly defined circumstances defined and specified by the Real Estate Regulatory Authority's (RERA's) index.
The maximum allowed rental increases in 2010 shall be as follows:
- A 5% increase in rent is permitted if the rental value is 26% to 35% less than the average rent of properties with similar specifications as defined by RERA.
- A 10% increase in rent is permitted if the rental value is 36% to 45% less than the average rent of properties with similar specifications as defined by RERA.
- A 15% increase in rent is permitted if the rental value is 46% to 55% less than the average rent of properties with similar specifications as defined by RERA.
- A 20% increase in rent is permitted if the rental value is more than 55% lower than the average rent of properties with similar specifications as defined by RERA.
The new decree is effective immediately and will be published in the official gazette.
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