Decree No. (43) of 2013 Determining Rent Increases for Real Property in the Emirate of Dubai

We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,

After perusal of:

Law No. (9) of 2004 Concerning Dubai International Financial Centre and its amendments;

Law No. (16) of 2007 Establishing the Real Estate Regulatory Agency;

Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai and its amendments;

Decree No. (22) of 2009 Concerning Special Development Zones in the Emirate of Dubai;

Decree No. (2) of 2011 Concerning Rent in the Emirate of Dubai;

Decree No. (26) of 2013 Concerning the Rent Disputes Settlement Centre in the Emirate of Dubai; and

The legislation regulating free zones in the Emirate of Dubai,

Do hereby issue this Decree.

Article (1) Percentages of Increase

When renewing real property lease contracts, the maximum percentage of rent increase for real property in the Emirate of Dubai will be as follows:

1. No rent increase, where the rent of the real property unit is up to ten percent (10%) less than the average rental value of similar units;
2. Five percent (5%) of the rent of the real property unit, where the rent is eleven percent (11%) to twenty percent (20%) less than the average rental value of similar units;
3. Ten percent (10%) of the rent of the real property unit, where the rent is twenty one percent (21%) to thirty percent (30%) less than the average rental value of similar units;
4. Fifteen percent (15%) of the rent of the real property unit, where the rent is thirty one percent (31%) to forty percent (40%) less than the average rental value of similar units; or
5. Twenty percent (20%) of the rent of the real property unit, where the rent is more than forty percent (40%) less than the average rental value of similar units.

© 2014 The Government of Dubai Legal Affairs Department (1) Every effort has been made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of conflict the Arabic text will prevail.

Article (2) Scope of Application

This Decree will apply to landlords, whether private or public entities, in the Emirate of Dubai, including those in special development zones and free zones such as Dubai International Financial Centre.

Article (3) Average Rental Value

For the purposes of application of Article (1) of this Decree, the average rental value of similar units will be determined in accordance with the “Rent Index of the Emirate of Dubai” approved by the Real Estate Regulatory Agency.

Article (4) Publication and Commencement

This Decree comes into force on the day on which it is issued, and will be published in the Official Gazette.

 

Mohammed bin Rashid Al Maktoum

Ruler of Dubai

Issued in Dubai on 18 December 2013

Corresponding to 15 Safar 1435 A.H.