Dubai and Abu Dhabi · Guide · Rent increases for owners who let

Dubai caps rent increases on renewal at 0% to 20% under Decree 43 of 2013 and the RERA index, while Abu Dhabi has held renewals at 0% since 2 June 2026: a guide for Kuwaiti owners

A Kuwaiti who buys an apartment in Dubai to let it out does not set the rent increase at renewal freely. Decree No. 43 of 2013, issued by the Ruler of Dubai on 18 December 2013, allows no increase when the current rent is up to 10% below the average for similar units, and then 5%, 10%, 15% or 20% as the gap widens, with the average taken from the Rent Index approved by the Real Estate Regulatory Agency (RERA), which since 2 January 2025 rates each building on its condition and services. Under Law No. 33 of 2008 the party who wants to change the rent must tell the other at least 90 days before the contract ends. In Abu Dhabi the rules are tighter for now: since 2 June 2026 the Abu Dhabi Real Estate Centre (ADREC) has held the annual increase cap on residential, commercial and industrial renewals at 0%, down from 5%, for a temporary period and until further notice, with ADGM communities excluded. The decree, the law and both announcements are on the official websites, which we opened today.

Al Mithaq news desk · Published 24 October 2026 · Source: Dubai Land Department: Decree No. 43 of 2013 on determining the increase in real estate rentals in the Emirate of Dubai (official English text

Apartment towers along the Dubai Marina waterfront promenade, one of the city's largest rental districts, photographed in November 2023. Picture: EditQ, Wikimedia Commons, CC0

20%the most a Dubai rent can rise on renewal, and only when the current rent is more than 40% below the RERA average

90 daysminimum notice before the contract ends for either party to change the rent, Law 33 of 2008

0%increase allowed on tenancy renewals in Abu Dhabi since 2 June 2026, until further notice

The five bands of Decree 43 of 2013

Decree No. 43 of 2013, signed by Sheikh Mohammed bin Rashid Al Maktoum as Ruler of Dubai on 18 December 2013 and in force from that day, sets the maximum increase a landlord may ask for when a lease is renewed. Article 1 ties it to how far the current rent sits below the average market rent for similar units: no increase if the rent is up to 10% below the average; up to 5% if it is 11% to 20% below; up to 10% if it is 21% to 30% below; up to 15% if it is 31% to 40% below; and up to 20% if it is more than 40% below. Article 2 applies the decree to every landlord in the emirate, public or private, including the special development areas and the free zones, and names the Dubai International Financial Centre among them. Article 3 says the average market rent is taken from the Rent Index of the Emirate of Dubai approved by the Real Estate Regulatory Agency. The percentages are ceilings, not entitlements: a landlord may ask for less, and may not ask for more.

The index behind the average: rated building by building since 2025

The average that the decree refers to comes from the Land Department's rental index. On 2 January 2025 the department launched the Smart Rental Index 2025 at a press conference at its headquarters. Majid Al Marri, Chief Executive of the Real Estate Registration Sector at the department, said the index relies on artificial intelligence and a building classification system; each building is assessed on its technical and structural characteristics, the quality of its finishes and maintenance, its location, and the services available in it such as maintenance, cleanliness and parking management. The department says the index covers all residential areas in Dubai, including the special development zones and the free zones, and that commercial and industrial indexes will follow. Al Marri also said that more than 900,000 rental contracts were registered in 2024, 8% more than the year before.

Notice periods: 90 days to change the rent, 12 months to evict

Law No. 33 of 2008, issued on 1 December 2008, amended the 2007 landlord and tenant law and still governs the procedure. Article 13 lets either party ask to reconsider the rent or the other terms before the contract expires; if they cannot agree, the rent disputes tribunal may set a fair rent under Article 9, which tells it to consider the prevailing economic situation in the emirate and RERA's rent increase criteria among other factors. Article 14 requires the party who wants a change to notify the other at least 90 days before the contract expires, unless the two have agreed otherwise. Article 25 deals with eviction after the contract ends: for the reasons the law lists, the landlord must notify the tenant at least 12 months before the eviction date, through a notary public or by registered mail. The Legislation Portal's translation notes that the Arabic text prevails if the two differ.

Abu Dhabi: 0% on renewals until further notice

In a release dated 3 June 2026 on its website, the Abu Dhabi Real Estate Centre announced that the Government of Abu Dhabi had reduced the annual rental increase cap from 5% to 0% for a temporary short period and until further notice, covering residential, commercial and industrial tenancy contracts across the emirate. The centre's own market report for the first half of 2026, published on 18 August, states that the freeze came into effect on 2 June 2026 and that ADGM communities are excluded from it. The centre said demand had exceeded supply in recent years, pushing occupancy to record highs, and that the prices of new leases were up 15% across Abu Dhabi and 23% in the investment zones compared with the previous year, which was affecting housing continuity for many residents. Renewals, and new agreements on a unit that has been let before, are to reference the rent in the property's last registered Tawtheeq contract, and the centre oversees compliance; tenants and businesses who believe the directive is not being followed can contact it through its website, call centre or email. The announcement gives no end date. We checked the centre's news page today and found no later announcement changing the measure; its most recent items are dated 2 and 12 October 2026 and concern other matters.

Flexi Rent: tenants paying monthly through the department's partners

One more change matters to an owner who lets through a management company. On 23 June 2026 the Land Department launched Flexi Rent and signed cooperation agreements with 11 companies, among them Wasl Properties, Deyaar Property Management, Dubai Investment Real Estate and Driven Properties. Under the model, tenants of vacant or eligible units owned or managed by the partners can pay the rent in monthly, quarterly or half-yearly instalments, and the partners may offer discounts or incentives to new tenants under their own approved policies. The department provides the framework and the technical integration with its systems and promotes the scheme through the Dubai REST app; it names the number of units enrolled, the contracts concluded, occupancy and tenants' payment compliance among the indicators it will track during the pilot phase. The release does not oblige private owners to accept instalments, and it does not change the rent increase rules above.

Why it mattersOur view for a Kuwaiti owner: a Dubai apartment bought to let is priced on today's rent, not on the increase you hope for. The decree makes the increase a function of how far your rent sits below the RERA average, so a flat already let at the market rate gets no increase at all at renewal, and a flat let 25% below the market gets at most 10% in one year, not the full gap. Before you send a renewal notice, check the figure in the Land Department's rental index calculator (in the Dubai REST app or on its website) rather than taking a broker's word, and send the notice at least 90 days before the contract ends, or the old rent runs on. The building rating introduced in 2025 means a well-kept building with proper maintenance, cleaning and parking management is placed higher in the index than a tired one, so service charges that keep the building in good order protect your rent as well as your resale price. In Abu Dhabi, work on 0% for as long as the ADREC directive stands; it is described as temporary, but no end date has been given, and renewals are checked against the last registered Tawtheeq rent; only the ADGM communities are outside the freeze. None of this changes the purchase price or the registration fees we described in our earlier guide; it changes the rent line in your calculation, and that line should be the current index rent, with the increase treated as a bonus if the rules allow it.

What Al Mithaq adds

Our Emaar communities page lists the Dubai developments we offer to buyers from Kuwait, including Dubai Creek Harbour, Dubai Hills and The Valley, with prices on request. When you ask us about an apartment to let, we send you the current index rent for that building type and area from the Land Department's calculator alongside the asking rents, so the yield in your calculation rests on the official figure and not on a listing. We also explain the registration fees and the residency a purchase can open; read our guide to the 4% Dubai and 2% Abu Dhabi registration fees and our UAE residency guide. Tell our team in Kuwait the budget, the emirate and whether the home is to live in or to let, and we will send the options, the payment plans and the rent figures by call or WhatsApp on the same working day.

Sources

Key facts

Dubai rule: Decree No. 43 of 2013, issued 18 December 2013, in force from issue; applies to all landlords including free zones and DIFC
Rent up to 10% below the index average: No increase
11% to 20% below: Up to 5%
21% to 30% below: Up to 10%
31% to 40% below: Up to 15%
More than 40% below: Up to 20%
Average rent set by: RERA's Rent Index of the Emirate of Dubai; Smart Rental Index with building classification since 2 January 2025
Notice to change the rent: At least 90 days before the contract expires, unless agreed otherwise (Law 33 of 2008, Article 14)
Notice to evict after expiry: At least 12 months, through a notary public or registered mail (Article 25)
Abu Dhabi: ADREC: renewal cap cut from 5% to 0% with effect from 2 June 2026 (release dated 3 June), residential, commercial and industrial, until further notice, ADGM communities excluded; renewals reference the last registered Tawtheeq rent
Rental contracts in Dubai, 2024: More than 900,000, up 8% on 2023 (Land Department, 2 January 2025)