Can the real estate company ask for 10% rent increase if the RERA rental index does not allow it?

Hello,

Rent increases are regulated by RERA (Real Estate Regulatory Agency), and landlords are not allowed to increase the rent beyond a certain percentage unless it’s in line with the rules established by RERA.

Rent increases are typically capped based on the rental index, and the increase is calculated using the official RERA rental index for the specific area.

If you’ve checked the RERA rental index today and seen no increase in your area (Al Nahda 2), then your landlord cannot lawfully increase your rent more than the legally allowed percentage, assuming you’ve already passed your rent renewal date.

If you believe they are asking for an increase that exceeds the allowable amount, you can challenge this with RERA’s guidance.

Dear Inquirer

We are pleased to serve you and address your inquiries.

You can apply to renew the lease contract according to the price announced by the Real Estate Regulatory Authority.

Contact us via email or call our offices in Dubai or Sharjah.

Jasim Al Haddad Advocates & Legal Consultants

You can decline the increase and renew the contract at the same previous rental value.

Contact us by phone so we can assist you.

Greetings,

According to the law, unless otherwise agreed in the contract in accordance with Article 13 and Article 14, if either party to the rental relationship wishes to change the lease contract, they must notify the other party at least 90 days in advance.

Otherwise, they must resort to the Rental Dispute Resolution Center.

For further clarification, you should visit the office.

Best Regards

Dear Questioner,

Thank you for your inquiry. Based on your situation:

1. Rent Increase and RERA Guidelines

Rent increases are governed by RERA's rental index, and the increase for Al Nahada 2 should be checked specifically for your area.

The 3-month rule mentioned by the real estate company refers to the time allowed for rent increases, but the key issue is whether the requested 10% increase aligns with RERA’s guidelines for your area.

Al Nahda 1 and Al Nahda 2 are different areas, so the rental rates for Al Nahda 1 should not apply to your location.

2. Next Steps

Check the RERA rental index for Al Nahada 2 to confirm if the increase is valid.

Communicate with the real estate company if the increase is unjustified. Consider formally responding in writing.

If the issue persists, you may file a complaint with RERA for resolution.

Please let me know if you need further assistance.

Best regards,

Mohammed Salah

Legal Consultant

Greetings,

Rent increases in Dubai are regulated by RERA’s Rental Index, and landlords must comply with official guidelines.

If the rental index for Al Nahda 2 does not permit an increase, the demand may be invalid.

Timing of the Check: The rental increase must be assessed based on RERA’s index at the time of notice issuance (typically 90 days before renewal).

Area Discrepancy: Your landlord must refer to Al Nahda 2, not Al Nahda 1, as rental rates differ by location.

If your landlord insists on the increase despite RERA guidelines, you may challenge it through the Rental Dispute Center. Book a consultation with Future Vision for Advocacy and Legal Consultancy for legal advice or representation.

Let us know if you need assistance in filing a dispute.

We are happy at Future Vision Law Advocates and Legal Consultancy to assist you and provide the best legal services that meet your needs.

To contact us, you can call or WhatsApp us.

To address the rent increase in Al Nahda 2, it's essential to understand that according to RERA's guidelines under Law No. 26 of 2007, landlords can only increase rent based on market conditions and must notify tenants at least 90 days in advance.