RERA - Updated Rules for Rental Increments and Index for Dubai 2024

Dubai Real Estate Regulatory Agency (RERA) - Updated Rules for Rental Increments and Index for 2024

The Real Estate Regulatory Agency (RERA), part of the Dubai Land Department (DLD), has introduced new guidelines for rental increments and a revised Rental Index for the year 2024. These updates are designed to ensure a fair rental market, fostering stability and growth within Dubai's real estate sector.

The new rules will align rental increases more closely with current market values, as determined by the freshly updated Rental Index. This Index will now be refreshed bi-annually, maintaining its relevance and accuracy in line with Dubai's rapidly evolving property market.

Highlights of 2024 Rental Increment Rules

• No rental increase allowed for leases priced at or up to 10% below the median market rent according to the latest Rental Index.
• A maximum increase of 5% is permitted for properties priced between 11% and 20% below the median market rent.
• A maximum increase of 10% can be applied to leases priced between 21% and 30% below the median market rent.
• For properties leased at more than 30% below the median market rent, a maximum increase of 15% is allowed.
• If 40% or more below market rate, then a 20% maximum rental increase is allowed.

These new guidelines are part of RERA’s commitment to balancing the interests of tenants and landlords, ensuring neither party is disadvantaged by market fluctuations or static regulatory measures.

Landlords and tenants are encouraged to consult the updated Rental Index on the official Dubai Land Department website to understand how these changes might impact them.