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A tenant in Dubai Marina pays AED 96,000 a year. At renewal the RERA rental index gives an average of AED 125,000 for similar units. What is the highest annual rent the landlord may charge on renewal?
The gap is measured against the index average: (125,000 - 96,000) / 125,000 = 23.2% below average, which falls in the 21%-30% band of Article 1(c) of Decree No. 43 of 2013, allowing a 10% increase on the current rent: 96,000 x 1.10 = AED 105,600. Measuring the gap against the current rent instead (29,000 / 96,000 = 30.2%) wrongly puts the unit in the 15% band and gives AED 110,400. Adding 10% of the average (AED 12,500) gives AED 108,500, also wrong, because the percentage applies to the unit's own rent. Source: Decree No. (43) of 2013, Arts. 1(c) and 3; Law No. (26) of 2007, Art. 10 (in force 12 Oct 2026).
Dividing the gap by the current rent instead of the index average, which pushes the unit into a higher band.
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