Dubai's Property Market Recorded A Strongest Start For Both Sales & Rents
Landlords have tried to enforce large increases in annual rental prices, after several years of falling prices. It has left some tenants no choice but to pay up or leave.
There are laws in place to protect both the tenant and landlord in the UAE. Establishing good landlord-tenant relationships can be the best way to avoid to messy disputes.
Landlords have tried to enforce large increases in annual rental prices, after several years of falling prices. It has left some tenants no choice but to pay up or leave.
Tenant Rights For Renting in Dubai
The rights of the tenant remains, irrespective of whether the property they are living in is for sale or not. If a landlord chooses to sell a property that is being leased by a tenant, the terms of the contract remain intact.
Reasons Where A Landlord Permitted To Evict A Tenant
If the landlord:
1. Wants to sell the property
2. Wish to move into the property, or wish to move immediate family into the property, provided the landlord does not own a suitable alternative property for that purpose (evidence provided in advance)
3. Property requires extensive modernisation work that would prevent the tenant from living in it while the work is being carried out.
4. Property needs to be demolished.
Following the Law 33 of 2008
Law 33 of 2008 states that a 12 month written notice of eviction should be served upon expiry of an existing tenancy agreement.
Law 33 of 2008 Explanation
Tenant is part way through a yearly contract, the 12-month eviction notice can only be given at the end of that contract, which means the tenancy contract can, in theory, be extended for one more year.
Renting Policies
1. If the landlord wants to increase the rent, they also need to give a 90-day notice period, unless the contract states otherwise. No notice within this time frame means a landlord cannot raise the rent.
2. If there is no electronic or written communication served, the Dubai property rental contract is automatically renewed at the same rental price and based on the same conditions as the previous year.
3. If a tenant wants to make changes to the contract such as frequency of cheques given or permission to introduce a pet into the home, they must give 90 days’ notice to the landlord.
4. If the landlord does not agree and neither party can come to an agreement, the tenant has to vacate the property at the end of the current contract.
Rera Calculator
- Rera, established in 2013 to regulate the market and prevent it from overheating.
- Acting as a rental calculator showing whether or not an increase in rent is applicable and uses criteria such as:
1. Location
2. Property Type
3. Current rent
4. Number of rooms.
- Calculator works by comparing properties with similar ones nearby.
Rera Calculator Access
- Tenants and landlords can have access to the calculator on the Dubai Land Department website.
- Maximum percentage of rent increase for properties in Dubai depends on:
1. Area
2. Property Type & Size
3. Current Market Value
Rental Increase
If the rental price is:
1. Below 10% of the market value for the area, no increase is allowed.
2. Between 11% and 20% below market value for the area, a landlord can increase by 5%.
3. Between 21% and 30% below market value for the area, a landlord can increase by 10%.
4. Between 31% and 40% below market value for the area, a landlord can increase rent by 15%.
5. 41% or more below market value will attract a 20% increase in rent.
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