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Dubai Rent Valuation Certificate | Overview

Dubai Rent Valuation Certificate | Overview

Rent Valuation Certificate

Re-evaluation of Dubai rental property value, by landlords, can be done through the Dubai Land Department. Landlords who believe that the RERA calculator does not accurately reflect the rental value of their Dubai properties can benefit from this service.

In such cases, landlords can request the Land Department to value their specific Dubai property, factoring in the individual features and specifications. 

This service can be accessed through:

  • The Dubai Land Department’s official website or,
  • Through the Dubai REST app.

Under the Services menu, there is an option to Request Valuation of Property Lease.

Some of the required documents include:

  1. Details and photos of the specific property, 
  2. As well as a payment of AED 2,000 per unit.

Based on the submitted documents, the Land Department may issue the Rental Valuation Certificate, reflecting the current market value of that property in Dubai. This Certificate then becomes an official reference, which can be used by landlords to raise Dubai rent or in case of dispute. 

The principle of property re-evaluation is based on Dubai Law No. 33 of 2008, regarding Dubai rental laws. And, specifically, Article 9.2, which sets out criteria, such as the “overall economic situation in the Emirate” and the “average rent of similar property” in determining market value of the property. 

This principle is also well settled in the Dubai Rent Dispute Center or RDC, which has consistently authorized landlords to increase rent beyond the RERA calculator, on the basis of the Dubai Rental Valuation Certificate.  

 
Increasing Rent on Basis of Rental Valuation Certificate

Landlords can increase the rent in Dubai, above the RERA Calculator, in cases where they have obtained a Property Valuation Certificate, issued by the Dubai Land Department.

This Certificate, in turn, can be issued on the basis of Landlord’s proof that the current market value of their Dubai property is above that reflected in the RERA Calculator. 

Notably, in all cases landlords can only increase rent in Dubai, in line with the allowed percentage of rental increase. Which ranges from 5% to a maximum of 20%. As per Dubai Decree No. 43 of 2013 on Dubai Rent Increase, and Article 1, in particular.

Noteworthy, for the landlord to increase rent, using the Property Valuation Certificate, still requires: 1) the proper legal notice and 2) tenant’s approval. 

In the event the tenant does not agree to the new property value, the Landlord must file a case with the Dubai Rental Dispute Center or RDC, to confirm the new rent in Dubai, on the basis of the Property Valuation Certificate.

This principle was re-asserted by RDC recently, in April of 2023. 

  •  In that case, the landlord wished to increase rent in Dubai by AED 25,000, from AED 175,000 to AED 200,000, on the basis of the Rental Valuation Certificate.
  • This would have been 14.3% increase.
  • The RDC allowed for the Dubai rent increase, but limited it to 5% or AED 8,750.00
  • This was on the basis that the current Dubai rent of the property was 14% less than the Rental Valuation Certificate, which allows for a maximum of 5% increase.
  • In its judgment, RDC relied on: 1) the Dubai Decree No. 43 of 2013 on Dubai Rent Increase, as well as 2) Law No. 33 of 2008, otherwise known as Dubai Rental Law. 

Dubai Rent Valuation Certificate - FAQs

It is a service that provides re-evaluation of Dubai rental property. This can be done through the Dubai land Department.

Landlords who believe that the RERA calculator does not accurately reflect the rental value of their Dubai properties can benefit from this service.

During this situation, landlords can request the Land Department to value their specific Dubai property, factoring in the individual features and specifications. 

Based on the review of the submitted documents, the Dubai Land Department may issue the Rental Valuation Certificate, reflecting the current market value of that property in Dubai.

Some of the required documents include: 1) details and photos of the specific property, 2) as well as a payment of AED 2,000 per unit.

Yes. In fact, for the landlord to increase rent, using the Property Valuation Certificate, still requires: 1) the proper legal notice and 2) tenant’s approval. 

If the tenant does not agree to the new property value, the Landlord must file a case with the Dubai Rental Dispute Center or RDC, to confirm the new rent, on the basis of the Property Valuation Certificate.

In all cases landlords can only increase rent in Dubai, in line with the allowed percentage of rental increase. Which ranges from 5% to a maximum of 20%.

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LYLAW DUBAI

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