Dubai Rental Law: Landlords Must Provide 90 Days' Notice for Rent Increases

In a significant move to enhance transparency in the rental market, the Dubai Land Department (DLD) has mandated that landlords must provide tenants with a minimum of 90-day notice for rent hikes in Dubai. This regulation, effective from January 2025, is part of the newly introduced Smart Rental Index in Dubai, an AI-powered system designed to align rental adjustments with real-time market data.

The Smart Rental Index evaluates various factors, including building classification, current and historical rental rates, and specific location attributes, to determine permissible rent adjustments. Importantly, even if the index indicates that a rent increase is justified, landlords are obligated to issue a formal notice at least 90 days prior to the lease's expiration. Failure to provide this notice prohibits any rent escalation, regardless of the index's assessment.

Majid Al Marri, CEO of the Real Estate Registration Sector at DLD, highlighted the importance of this development, explaining that the Smart Residential Rent Index is designed to determine rental values fairly and transparently. By relying on building classifications and comprehensive criteria, including technical and service features, the system ensures that rent adjustments align with actual market trends. This initiative aims to create a balanced relationship between landlords and tenants, promoting equitable and data-driven rental practices.

In 2024, Dubai witnessed the registration of over 900,000 lease contracts, marking an 8% increase compared to the previous year. The introduction of the Smart Rental Index and the enforcement of the 90-day notice for rent hike in Dubai are anticipated to further stabilize the rental market, providing both landlords and tenants with a clear framework for rent adjustments.

These measures underscore Dubai's commitment to leveraging technology to enhance market transparency and protect the interests of all stakeholders in the real estate sector.