In response to rising rents and frequent disputes over renewal notices, the DLD introduced the Smart Rental Index in January 2025 — a more data-driven, transparent benchmark that uses actual transaction data, building classifications, and area-specific market conditions to determine lawful rent adjustments. For a deeper explanation of how this new system works and what it means for tenants and landlords, see our previous guide: “Dubai Introduces Smart Rental Index: A Game Changer for Tenants, Landlords and Investors.”
While the Smart Rental Index modernises how market rates are assessed, the legal framework governing rent increases — including Law No. 26 of 2007 (as amended by Law No. 33 of 2008) and Decree No. 43 of 2013 — continues to set strict conditions on when and how rent may lawfully be increased, including mandatory notice periods and statutory caps.
This matters now more than ever because Dubai’s population and housing demand are expanding rapidly. The UAE’s resident population reached approximately 11.3 million in 2024, a 5.7 % increase on the year before, reflecting strong immigration and workforce growth across the country. In Dubai specifically, the emirate’s population is on track to exceed 4 million residents, underscoring ongoing pressure on housing supply and rental markets.
As renewal notices arrive with higher figures, many tenants and landlords find themselves asking the same question:
Is the proposed rent increase lawful — and is it enforceable?
Whether you are a Tenant seeking protection or a Landlord aiming to maximise returns compliantly, understanding your legal position under the current laws and benchmarks is essential.
How we can help: At Motei & Associates, with deep expertise in UAE real estate legislation and dispute resolution, we help both tenants and landlords navigate the rental landscape safely, avoid costly disputes, and ensure lawful outcomes.