Three things to know
DLD's January 2025 announcement describes a building classification system. Use the current official benchmark for the relevant property.
Decree No. 43 of 2013 sets renewal caps from 0% to 20% according to the gap from the official average rental value.
Article 14 sets a default notice period of at least 90 days before contract expiry for amendments, unless the parties agree otherwise. Rent caps apply at renewal.
Dubai Land Department launched the Smart Rental Index on 2 January 2025. Its building classification considers technical characteristics, finishes, maintenance, location and services. This guide discusses its use in 2026; it does not assert a separately verified 2026 legislative upgrade or a uniform market-wide rental increase.
What replaced the old RERA calculator
The original RERA Rent Calculator produced a single average market figure for each community. It was simple but crude — the same figure applied to a high-floor marina unit and a ground-floor studio with no outdoor space.
The January 2025 DLD announcement describes a building-level classification system designed to reflect property quality. Use the current official result for your unit rather than assuming a floor-band adjustment or an unverified star-rating appeal procedure.
The rent increase matrix
The permitted increase is not a flat percentage — it is a function of how far below the SRI benchmark your existing rent sits. The further below market, the more you can raise; once within 10% of the benchmark, no increase is permitted at all.
A practical example: if the SRI benchmark for your 2-bed unit in a 3-star building is AED 120,000 per year and your tenant pays AED 84,000, your rent is 30% below market. You can increase by up to 10% — bringing the rent to AED 92,400. You cannot jump straight to market rate in a single renewal.
"The staircase is intentional. RERA designed the matrix to protect long-term tenants from shock while giving landlords a lawful route to close the gap over several renewal cycles."
The procedural requirements
Meeting the index percentage test is not the only consideration. Read Law No. 33 of 2008, particularly Articles 9 and 14, in DLD's legislation collection alongside the 2013 rent increase decree. The Arabic text prevails if the translation conflicts. These are renewal and notice provisions, not a blanket rule that every increase is automatically enforceable:
90 days' written notice
Article 14 requires notification at least 90 days before contract expiry when a party wishes to amend its terms, unless the parties agree otherwise. Check the contract and obtain legal advice on service and proof of receipt; this guide does not declare email valid or WhatsApp invalid in every case.
Assess the increase at renewal
Decree No. 43 of 2013 sets maximum increases when a lease is renewed. It does not establish the previously stated universal 12-month clock from the last increase. The contract, notice and applicable benchmark must be assessed together.
Active Ejari registration
Check that the Ejari registration and unit details are accurate before using the official index. Ask DLD or the Rental Disputes Centre about filing requirements; do not assume from this guide that an unregistered tenancy removes all rights or remedies.
Use the official DLD Smart Rental Index and its current input requirements to check your benchmark. Keep a dated copy of the result with the contract and notice records. A screenshot alone is not a guarantee of admissibility or a successful dispute outcome.
Disclaimer. This article is produced by Redwood Heritage Private Office for informational purposes only and does not constitute legal advice. Sources are Decree No. 43 of 2013, Law No. 33 of 2008 and DLD's 2 January 2025 index announcement. Consult the current official index and independent legal advice for a specific tenancy or dispute.