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Decree No. 43 of 2013 7 min read • Verified: November 1, 2026

Dubai Decree No. 43 of 2013 Explained: Official 0%, 5%, 10%, 15% & 20% RERA Rent Increase Brackets

In the Emirate of Dubai, a landlord cannot arbitrarily raise your annual rent upon contract renewal just because neighboring listings on property portals are higher. Under Dubai Decree No. 43 of 2013 (Determining the Increase in Real Estate Rent in the Emirate of Dubai), any rental increase is strictly capped at 0%, 5%, 10%, 15%, or an absolute ceiling of 20%, based purely on how far your current contract rent sits below the official DLD Rental Index benchmark.

Key Statutory Takeaways (2026)

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  • 0% Increase Allowed: If your current rent is less than 10% below the official DLD Rental Index average for similar properties.
  • 5% Increase Allowed: If your current rent is 11% to 20% below the DLD Rental Index benchmark.
  • 10% Increase Allowed: If your current rent is 21% to 30% below the DLD Rental Index benchmark.
  • 15% or 20% Max Cap: 15% if 31%–40% below market; 20% absolute maximum if more than 40% below market — even if the market doubled!

1. The 5 Statutory Rent Increase Tiers Under Article 1 of Decree 43

Issued on December 18, 2013 and remaining the binding law across all freehold and non-freehold areas of Dubai (including DIFC), Article 1 of Decree No. 43 of 2013 establishes five progressive rent increase brackets when renewing an existing tenancy contract:

  • Bracket 1 (0% Increase): No rent increase is permitted if the current rent is up to 10% less than the average rental value of similar units.
  • Bracket 2 (5% Increase): Maximum 5% increase if the current rent is 11% to 20% less than the average rental value.
  • Bracket 3 (10% Increase): Maximum 10% increase if the current rent is 21% to 30% less than the average rental value.
  • Bracket 4 (15% Increase): Maximum 15% increase if the current rent is 31% to 40% less than the average rental value.
  • Bracket 5 (20% Maximum Cap): Maximum 20% increase if the current rent is more than 40% less than the average rental value.

Run your exact current rent and market benchmark through our Dubai RERA Rent Increase Calculator to see your legally allowed cap immediately.

2. How the Percentage Difference Is Calculated

Under Article 3 of Decree No. 43 of 2013, the "average similar rent" is determined exclusively by the Rent Index of the Emirate of Dubai approved by the Real Estate Regulatory Agency (DLD Smart Rental Index). Our calculator checks the differential percentage between your current annual rent and the DLD benchmark to assign the exact legal bracket (0%, 5%, 10%, 15%, or 20%).

3. Worked Examples Across All 5 RERA Brackets

Suppose you currently pay AED 80,000/year for a 1-bedroom apartment in Dubai Marina or JLT:

  • If the DLD Index benchmark is AED 86,000 (+7.5% difference): 0% increase allowed. Your renewal rent stays AED 80,000.
  • If the DLD Index benchmark is AED 92,000 (+15% difference): 5% increase allowed (+AED 4,000 → New rent: AED 84,000).
  • If the DLD Index benchmark is AED 100,000 (+25% difference): 10% increase allowed (+AED 8,000 → New rent: AED 88,000).
  • If the DLD Index benchmark is AED 108,000 (+35% difference): 15% increase allowed (+AED 12,000 → New rent: AED 92,000).
  • If the DLD Index benchmark is AED 120,000 (+50% difference): 20% max increase allowed (+AED 16,000 → New rent: AED 96,000).

4. Why Property Finder / Bayut Listings Cannot Override the RERA Index

Landlords frequently send screenshots of vacant apartments listed on property portals asking for 30% or 35% higher rent. Under Dubai law, private portal listings have zero legal standing at the Rental Dispute Center (RDC). The only way a landlord can legally request a benchmark higher than the automated DLD Smart Rental Index is by paying DLD (~AED 2,000–4,020) for an official DLD Rent Valuation Certificate—and even then, the annual increase can never exceed the 20% Decree 43 ceiling.

5. Both Conditions Must Be Met: Index Eligibility + 90-Day Notice

Even if the DLD Rental Index says your landlord is eligible for a 10%, 15%, or 20% increase under Decree 43, the landlord still cannot enforce that increase if they failed to notify you in writing at least 90 calendar days prior to lease expiry under Article 14 of Law No. 26 of 2007!

Quick Reference Benchmark

Official Dubai Decree No. 43 of 2013 Rent Increase Schedule

Difference Below DLD Market Benchmark Maximum Permitted Rent Increase Example (Current Rent = 100,000 AED)
Up to 10% below market average 0% (No Increase Permitted) New Max Rent: 100,000 AED (+0 AED)
11% to 20% below market average 5% Maximum Hike New Max Rent: 105,000 AED (+5,000 AED)
21% to 30% below market average 10% Maximum Hike New Max Rent: 110,000 AED (+10,000 AED)
31% to 40% below market average 15% Maximum Hike New Max Rent: 115,000 AED (+15,000 AED)
More than 40% below market average 20% Absolute Legal Ceiling New Max Rent: 120,000 AED (+20,000 AED)
Free Instant Utility

Calculate Your Exact Legal Rent Hike Under Decree 43

Enter your current rent and the market benchmark to verify whether your landlord can raise rent by 0%, 5%, 10%, 15%, or 20%.

Open RERA Rent Calculator →
Statutory Q&A

Frequently Asked Questions

Can a Dubai landlord ever increase rent by more than 20% in a single year?
No. Under Article 1(e) of Dubai Decree No. 43 of 2013, 20% is the absolute statutory maximum rent increase in a single renewal year, even if the current rent is 60% or 80% below market value.
Does Decree No. 43 of 2013 apply to commercial offices, retail shops, and warehouses in Dubai?
Yes! Article 2 of Decree No. 43 of 2013 explicitly states that the exact same 0%, 5%, 10%, 15%, and 20% rent increase brackets apply to both residential and commercial properties across Dubai, including Free Zones.
What if I signed an addendum in Year 1 agreeing to a 25% rent increase in Year 2?
RDC judges consistently rule that Dubai tenancy laws (Law No. 26 of 2007 and Decree No. 43 of 2013) are matters of public order designed to protect rental market stability—clauses that pre-waive a tenant's right to the RERA Rental Index at renewal can be challenged at the Rental Dispute Center.

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Automated analysis can make mistakes. Please verify critical figures with official UAE regulatory authorities (FTA, DLD, MOHRE). Not official legal or tax advice.