Dubai Rental Market Guide: What Every Tenant Should Know
How Dubai Rentals Work
Dubai's rental market is unlike most cities. Leases are typically annual, and landlords often demand rent in advance — paid via post-dated cheques. The standard used to be 1 cheque (full year upfront), but competitive markets have pushed many landlords to accept 2, 4, 6, or even 12 cheques. The number of cheques is negotiable and directly affects your cash flow — 12 cheques is essentially monthly payment. Every tenancy contract must be registered with Ejari (Dubai Land Department's tenancy registration system) to be legally valid. Without Ejari registration, you can't open a DEWA account, get a parking permit, or sponsor dependents.
Decree 43 of 2013: Rent Increase Caps
Dubai doesn't have flat rent control — instead, it uses a market-indexed system. Decree No. 43 of 2013 caps how much a landlord can increase rent at renewal, based on how your current rent compares to the RERA average for similar properties. If your rent is within 10% of the average: no increase allowed. 11–20% below: max 5%. 21–30% below: max 10%. 31–40% below: max 15%. Over 40% below: max 20%. This means if you're already paying market rate or above, your landlord legally cannot raise your rent. The system protects tenants from arbitrary increases while allowing rents to gradually catch up to market rates.
Tenant Rights You Should Know
UAE tenancy law strongly protects tenants. Your landlord must give 90 days written notice before any rent increase, delivered via registered mail or notary public. Without proper notice, the tenancy renews automatically under the same terms. A landlord cannot evict you just because they want to — valid eviction grounds include: selling the property (12 months notice + notarised letter), personal use by the owner or a first-degree relative (12 months notice), major renovation requiring vacancy, or tenant breach of contract. Even in eviction cases, you have the right to appeal through the Rental Dispute Settlement Centre (RDSC).
Costs Beyond Rent
Your annual rent is just the starting point. Budget for: agent's commission (typically 5% of annual rent, paid once at the start of the tenancy), security deposit (5% for unfurnished, 10% for furnished — refundable), DEWA security deposit (AED 2,000 for apartments, AED 4,000 for villas), Ejari registration fee (AED 220), and the housing fee on your DEWA bill (5% of annual rent spread across 12 monthly bills). Moving costs in Dubai run AED 1,500–4,000 depending on apartment size. Chiller (district cooling) deposits apply in some areas — check before signing.
How Rent Increases Actually Work
Your landlord can only propose a rent increase at renewal, not mid-lease. They must provide 90 days written notice before the lease expiry date. If they miss this window, the lease auto-renews at the same rent. You can check whether a proposed increase is legal using the RERA Rental Index Calculator (Dubai REST app) — it shows the official average for your specific building. If the proposed increase exceeds what's allowed, you can refuse it in writing and continue paying the current rent. If the landlord insists, they must take the matter to the RDSC — and the RDSC will apply Decree 43 caps, not whatever the landlord demands.
Negotiation Strategies
Everything in Dubai rental is negotiable. If your rent is above the area average, you have strong leverage — show your landlord comparable listings on Bayut or Property Finder. Offering more cheques (e.g., 1 cheque instead of 4) can sometimes get you a lower annual rent. Renewing early signals commitment and makes landlords more flexible. If your building has high vacancy rates (check by looking at how many units are listed), the landlord needs you more than you need them. Always get any agreed changes in writing as an addendum to your Ejari-registered contract.
The Rental Dispute Settlement Centre (RDSC)
The RDSC is your final recourse for any tenancy dispute. You can file cases through the Dubai REST app for a fee of AED 3.5% of annual rent (minimum AED 500, maximum AED 15,000). Common cases include: unlawful rent increases, security deposit disputes, maintenance issues the landlord refuses to fix, and illegal eviction attempts. The RDSC process typically takes 2–4 weeks for straightforward cases. Their decisions are legally binding. Pro tip: the mere act of filing or threatening to file with RDSC often resolves disputes faster than the actual hearing — landlords generally prefer to settle rather than deal with the process.