Dubai Rent Increase Percentage Calculation

Dubai rent increase limited to a maximum of 20% of the contract value. In other words, the most that the landlord can legally increase your rent by is 20%, from your current rent amount. 

This is irrespective of how much higher, the landlord believes, the current market value of the property may be. 

Importantly, the allowable percentage of rent increase in Dubai depends on the percentage of the increase of the market value of the property. 

Specifically,

• In cases where the market value of the property has increased by no more than 10% from the contract value, then there is NO increase allowed, all together. 
• If the market value of the property has increased between 11% – 20% of the contract value – then the maximum percentage of increase is 5%.
• In cases where the market value is between 21% – 30% above the contract value – the percentage of increase is 10%.
• If the market value of the property is between 31% and 40% over the contract value – the maximum increase is 15%. 
• And, finally, if the market value of the property is more than 40% above the contract value – the maximum percentage of rent increase is 20%. 

This means, in simple terms, that if your contract rent is AED 100,000 and the property is now valued at AED 300,000, or 3 times more – the maximum amount that the landlord can increase your rent by is AED 20,000, to a total of AED 120,000/per year, which is a 20% increase. 

This is in accordance with the Dubai Decree No. 43 of 2013, Determining Rent Increase for Real Property in the Emirate of Dubai.

And Article 1, titled Percentages of Increase, in particular.