New Dubai Rental Rules 2025: Enhanced Protection for Tenants and Landlords

In 2025, Dubai introduced significant updates to its real estate rental laws, creating a more balanced and transparent market for both tenants and property owners. Here’s a breakdown of the key changes you need to know.

1. Revised Rent Increase Regulations

New Calculation Method

Previously, rent increases were determined solely by the RERA Rental Increase Calculator. Starting in 2025:

• Inflation rates are now factored into the maximum allowable rent hike.
• Increases are capped at 20%, even if market prices surge beyond this threshold.

Extended Notice Period

• Landlords must notify tenants about rent increases 90 days before lease expiration (up from 60 days).
• Notices must be sent in writing (email or registered mail).

2. Simplified Lease Renewals

• Contracts now automatically renew under the same terms if neither party terminates the agreement at least 60 days before expiry.
• Tenants can request a one-month free extension for relocation purposes.

3. Stronger Eviction Protections

Landlords can only terminate leases for valid reasons, including:

• Property sale (with proof of transaction).
• Major renovations (supported by permits).
• Owner’s personal use (must occupy the property for minimum 2 years).
• Unlawful evictions entitle tenants to compensation equal to 3 months’ rent.

4. Updated Security Deposit Rules

• Maximum deposit is now 5% of the annual rent (previously 10%).
• Deposits must be refunded within 14 days of lease termination (down from 30).
• Tenants can dispute wrongful deductions via the DLD Dispute Center.

5. Faster Dispute Resolution

• A new online DLD platform expedites conflict resolution.
• Cases are typically resolved within 10 business days.
• Landlords face fines up to AED 50,000 for unjustified rent hikes.

Conclusion: A Fairer Rental Market

The 2025 reforms strike a balance between tenant and landlord rights:
✅ Tenants gain stability with predictable rent increases and eviction safeguards.
✅ Landlords benefit from streamlined processes and digital dispute management.

Pro Tip: Always verify contract terms through RERA’s official portal or a licensed real estate agent.