Dubai RERA Rent Increases, Ejari & Rental Disputes question: maximum annual rent on renewal

Dubai RERARent Increases, Ejari & Rental Disputes

A two-bedroom flat in Al Barsha 1 is let at AED 70,000 a year. The rental index average for similar units is AED 100,000. What is the maximum annual rent on renewal?

A AED 73,500
B AED 77,000
C AED 80,000
D AED 84,000

Show the answer and explanation

Answer: B. AED 77,000

The gap is measured against the index average: (100,000 - 70,000) / 100,000 = 30%, the top of the 21%-30% band in Article 1(c) of Decree No. 43 of 2013, which allows 10% of the current rent: 70,000 x 1.10 = AED 77,000. Dividing the gap by the current rent (30,000 / 70,000 = 42.9%) wrongly gives the 20% band and AED 84,000. Adding 10% of the average (AED 10,000) gives AED 80,000, which uses the wrong base. Source: Decree No. (43) of 2013, Arts. 1(c) and 3 (in force 12 Oct 2026).

Common mistake

Placing a rent exactly 30% below the average in the next band up.

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