Decree No. (43) of 2013 Determining Rent Increase for Real Property in the Emirate of Dubai
Formal Name: Formal Name Decree No. (43) of 2013 Determining Rent Increase for Real Property in the Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai, After perusal of:
Law No. (9) of 2004 Concerning the Dubai International Financial Centre and its amendments;
Law No. (16) of 2007 Establishing the Real Estate Regulatory Agency;
Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai and its amendments;
Decree No. (22) of 2009 Concerning Special Development Zones in the Emirate of Dubai;
Decree No. (2) of 2011 Concerning Real Property Rent in the Emirate of Dubai;
Decree No. (26) of 2013 Concerning the Rental Disputes Settlement Centre in the Emirate of Dubai;
and The legislation regulating free zones in the Emirate of Dubai, Do hereby issue this Decree.
Article 1
When renewing Real Property Lease Contracts, the maximum percentage of Rent increase for Real Property in the Emirate of Dubai will be as follows:
a. no Rent increase, where the Rent of the Real Property unit is up to ten percent (10%) less than the average rental value of similar units;
b. five percent (5%) of the Rent of the Real Property unit, where the Rent is eleven percent (11%) to twenty percent (20%) less than the average rental value of similar units;
c. ten percent (10%) of the Rent of the Real Property unit, where the Rent is twenty-one percent (21%) to thirty percent (30%) less than the average rental value of similar units;
d. fifteen percent (15%) of the Rent of the Real Property unit, where the Rent is thirty-one percent (31%) to forty percent (40%) less than the average rental value of similar units; or
e. twenty percent (20%) of the Rent of the Real Property Unit, where the Rent is more than forty percent (40%) less than the average rental value of similar units.
Article 2
This Decree will apply to Landlords, whether private or public entities, in the Emirate of Dubai, including those in Special Development zones and free zones such as the Dubai International Financial Centre.
Article 3
For the purposes of application of Article (1) of this Decree, the average rental value of similar units will be determined in accordance with the “Rent Index of the Emirate of Dubai” approved by the Real Estate Regulatory Agency.
Article 4
This Decree comes into force on the day on which it is issued, and will be published in the Official Gazette.