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Dubai: Can I challenge steep rent increase for my apartment?

Rent increase and decrease related to residential apartments is decided by the Dubai Real Estate Regulatory Agency

Question: I have been residing in a one-bed apartment in Dubai for the last 10 months. My rent contract, which expires soon, specifies an annual rent of Dh35,000. I have received a mail from my real estate company, stating that the rent will be hiked to Dh42,000 when I renew it. I feel the rent hike is too steep. Is there any way I can challenge this?

Response: Pursuant to your queries, as you are residing in a rented apartment in Dubai, the provisions of Law No. 26 of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai (the ‘Dubai Tenancy Law’) and the provisions of Law No. 33 of 2008 Amending Law No. 26 of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai (the ‘Amended Dubai Tenancy Law’) are applicable.

It may be noted that the rent increase and decrease related to residential apartments in Dubai is decided by the Dubai Real Estate Regulatory Agency (Rera) based on the rent calculator designed by the Land Department of Dubai.

Article 10 of the Dubai Tenancy Law states: “Rera shall have the authority to establish criteria relating to the percentage of Rent increase in the Emirate in line with the requirements of the prevailing economic situation in the Emirate.”

Based on the aforementioned, you may check the rent value of your apartment through the Rera rent calculator on the website of the Land Department of Dubai.

In the event you find the rent for the similar apartment in your residential area is lesser than the rent offered by your real estate company while renewing your contract or if the rent increase percentage is higher than which is mentioned in the rent calculator, you may approach your real estate agent and mention that the rent increase offer provided to you on renewal of your tenancy contract is high.

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If the real estate agent does not comply with the Rera rent calculator, you may approach the Rental Dispute Centre (RDC) of Dubai and file a complaint against your landlord and the real estate company. Based on your complaint, the RDC may summon your landlord and/or the real estate company and decide the rent of your apartment which is payable upon renewal of the tenancy contract.

This is in accordance with Article 13 of the Amended Dubai Tenancy law, which states: “For the purposes of renewing a Lease Contract, the Landlord and Tenant may, prior to the expiry of the Tenancy Contract, amend any of its terms and reconsider increasing or reducing the Rent. If the Landlord and Tenant fail to reach an agreement in this regard, the Tribunal may determine the fair Rent, taking into account the criteria stipulated in Article 9 of this law."

Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.