WHAT TENANTS, OWNERS & BUYERS NEED TO KNOW ABOUT RENT INCREASES IN DUBAI

In recent years, Dubai’s rental market has seen notable growth. During 2024, some districts reported year-on-year rent rises of up to 8 – 15%, particularly after updates to the official rental index.

 In the first quarter of 2025, residential rents were still up 14.4% year-on-year, even if quarterly growth cooled to only 1.0%.

For tenants — whether renewing or searching for a new lease — this means the market is competitive, costs are rising, and regulations are shaping how increases may apply. With evolving rules and strong demand, knowing how to negotiate effectively and protect your interests is more important than ever.

For Tenants

• Most sharp rises take place during lease commencement rather than renewals. Tenants can opt for longer contracts or have to negotiate harder / via an expert real estate agent for newer leases.

• The Dubai Land Department’s Smart Rental Index is the legal benchmark to check whether a proposed rent is justified. 

• Offering more rental cheques upfront, requesting a longer lease term (e.g., 18–24 months), or presenting recent similarly-priced listings can shift the landlord’s position. 

• If proposed increases exceed what the Rental Index allows, tenants can file a complaint with the Rental Dispute Settlement Centre. 
  

For Property Owners & Investors

• Letting rents rise unchecked can push good tenants out. Stable communities now see landlords offering more competitive terms to retain occupancy. 

• Buyers interested in rental properties should know that tenants today are well-informed and ready to negotiate when it’s time to renew their lease. So it is necessary to understand the regulations up-to-date or to get expert advice.

• It’s smarter to invest in buildings where rent increases are steady and tenants tend to stay longer — keeping good tenants is more valuable than chasing big rent jumps.

• A professional consultant can guide you with rental income estimates that reflect what’s happening right now — including how much negotiation power tenants have today.

While Dubai still offers strong rental-market opportunities, every lease, renewal and purchase now demands more insight than ever. Understanding the tools available to tenants—and the negotiation dynamics owners and buyers face—is essential.

At Anarock Middle East, we support tenants, owners and investors through informed negotiation and step-by-step guidance. Reach out today to place yourself safe and well in Dubai’s rental and investment market.