Rent
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If you are new to town and not sure about where to start on finding your first home, we’ve got you covered!
Dubai is a sought-after destination among the cosmopolitan population looking for lucrative career opportunities and comfortable lifestyles. Thousands of expats move to Dubai looking to turn their dreams into reality. Hence, the vibrant city has an excellent selection of residential properties to accommodate its growing population.
Renting property in Dubai is a good investment for several reasons
- Rental income: Dubai has a high demand for rental properties, especially in popular areas like Downtown Dubai, Marina, and Palm Jumeirah. Renting out your property can provide you with a steady stream of rental income, which can be a source of passive income.<
- Capital appreciation: Dubai’s real estate market has experienced significant growth over the years, and property values have appreciated consistently. By renting your property, you can benefit from potential capital appreciation as the value of your property increases over time.
- Tax benefits: Dubai does not impose income tax on rental income, making it an attractive option for property investors. This means that you can keep a higher portion of your rental income, increasing the overall return on your investment.
6 Simple Steps to Rent a Property in Dubai
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Dubai offers a wide range of rental properties, including: Apartments (Studio, 1BHK, 2BHK, 3BHK+) Villas & Townhouses (3BHK, 4BHK, 5BHK+) Serviced Apartments (Fully furnished with hotel-like amenities) Shared Accommodations (Room rentals in shared villas/apartments) Commercial properties includes Offices, Shops, Warehouses and Whole Building
Rent varies by location and property type. As of 2024, approximate annual rents are: Studio: AED 35,000 – AED 70,000+ 1BHK Apartment: AED 50,000 – AED 120,000+ 2BHK Apartment: AED 80,000 – AED 180,000+ 3BHK Villa/Townhouse: AED 120,000 – AED 300,000+ Prices are higher in prime areas like Downtown Dubai, Palm Jumeirah, and Dubai Marina.
Passport & UAE visa copy Emirates ID Salary certificate or proof of income (some landlords require 3-6 months’ bank statements) Security cheque(s) for rent and deposit
Most landlords prefer 1-4 cheques (e.g., 1 cheque for full year, 2 cheques for 6 months each, or 4 cheques quarterly). Some may offer monthly payments but usually at a higher rent.
Typically 5% of the annual rent for unfurnished properties. 10% for furnished properties. The deposit is refundable at the end of the tenancy if no damages occur.
The tenant usually pays the real estate agent’s commission, which is 5% of the annual rent (+5% VAT).
DEWA (Dubai Electricity & Water Authority) – Utility provider; tenants must register and pay for water/electricity. Ejari – Mandatory online registration of the tenancy contract with RERA (Real Estate Regulatory Agency).
Rent increases are regulated by the RERA Rental Index. Landlords can only increase rent if the current rate is below market average (with proper notice). Maximum increase limits: 5% if current rent is 11-20% below market rate 10% if 21-30% below 15% if 31-40% below 20% if over 40% below
90 days’ notice before lease renewal for rent increases or eviction (must be via notarized letter). Eviction is only allowed for specific reasons (e.g., selling the property, personal use).
Only if the tenancy contract allows subletting (many landlords prohibit it). Subletting without permission can lead to lease termination.
Early termination penalties apply (usually 1-2 months’ rent). Some contracts allow early exit if 60-90 days’ notice is given.
Landlord: Major repairs (AC, plumbing, electrical, structural issues). Tenant: Minor maintenance (light bulbs, clogged drains, etc.).
Housing Fee (5% of rent) – Added to DEWA bills for expats. Ejari fee (~AED 220) – Tenancy contract registration. Agency fees (5% + VAT) – If using a real estate agent.
Verify the landlord’s ownership via the Dubai Land Department (DLD) or the Dubai REST app. Ensure the property has a valid Tawtheeq (municipal registration) for Ejari.
Property Finder (propertyfinder.ae) Bayut (bayut.com) Dubizzle (dubizzle.com) Real estate agencies like Arbat Realty For legal advice or disputes, contact: RERA (Real Estate Regulatory Agency) – 800 4488 Dubai Land Department (DLD) – 800 4488