Facing a rent hike? Your landlord must now give a 90-day notice
These are the new rules for Dubai rents…
Dubai rents are on the rise everywhere, but under the updated property index, landlords must now give a 90-day notice of their plans to increase the annual rents of their units.
The breakdown…
A few rules and regulations have been set in place for the new procedures of rent increase, all established to protect the tenant from unexpected and unfair rent hikes. The landlord must notify the tenant of a rent increase at least 90 days before the contract’s expiration. The increase will be applied only if the Smart Rent Index confirms the property’s eligibility.
If the landlord does not notify the tenant at least 90 days before the contract’s expiration then no increase will be applied, even if it was permitted under the index.
In cases where the landlord provided the required 90-day notice and the previous index supported the increase, but the new index does not, the renewal date will determine which index applies.
Which means that the terms of the previous index will be applied if the contract was renewed before 2025, and the rules of the new index will be applied if the contract is renewed during 2025.
But why do we need this?
Population in Dubai has been on an upward climb, and as demand increases and the influx of renters and even buyers only seems to rise, stability in the property market is a must to protect both tenant and landlord, as well as improve consumer confidence in the property market.
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In the third quarter of 2024, rents saw a hike for the 15th quarter in a row and by 18 per cent annually. Apartment rents increased by 19 per cent annually, and villa rents increased by 13 per cent, the research found.
In a bid to stabilise the massive increases in rent in the last quarter of 2024, as well as mitigating overall inflation in Dubai for 2025, the index is promoting a better, more transparent relationship in the rental sector. You should be able to make informed decisions based on accurate data.
The new property index…
The new property index was launched by the Dubai Land Department in January of this year – January 2 – and is aimed at bringing about stability in the property market. The Smart Rental Index makes use of artificial technology to provide property price updates at any time, unlike its predecessor, which was updated once a year.
Some of the other features of the new index include a star rating system for residential buildings, and a focus on each single building, unlike the old one that focused on zones or districts. The new index will also cover all areas in Dubai including freehold and non-freehold areas.
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