DUBAI, 21st December 2013 (WAM) - In his capacity as the Ruler of Dubai, UAE Vice President and Prime Minister His Highness Sheikh Mohammed bin Rashid Al Maktoum has issued Decree No. (43) of 2013 concerning the percentages of maximum property rent increase that are allowed upon the renewal of tenancy contracts.
The Decree states that there should not be any rent increase if the rent of the property unit is less than 10% of the average similar rent value. If the rent value is 11% to 20% less than the average similar rent value, the maximum rent increase shall be equal to 5% of the rent value. Additionally, if the rent value is 21% to 30% less than the average similar rent value, the maximum rent increase shall be equal to 10% of the rent value. If the rent value is 31% to 40% less than the average similar rent value, the maximum rent increase shall be equal to 15% of the rent value. A maximum rent increase of 20% is applicable if the rent value is less than 40% or more of the average similar rent value. The Decree applies to landlords from the public and private sectors in the emirate of Dubai including private development areas and free zones. Article III of the Decree states that the average similar rent value of the property is determined by the Real Estate Regulatory Agency?s (RERA) rent index. The Decree is effective from the date of issuance and shall be published in the Official Gazette.Copyright Emirates News Agency (WAM) 2013.
