Property Market Rate by RERA- Rents can be increased up to 20% in Dubai!

Landlords in Dubai will be able to increase rents by up to 20% following a new decree by Dubai's Sheikh Mohammed bin Rashid Al Maktoum issued  late on Saturday.

The new ruling sets the maximum rent hikes on properties, depending on current market rate. 

Landlords can increase rent under the following guidelines:

• If rent is less than 10% of market rate, there will be no increase.
• If rent is 11-20% less than market rate, the maximum rent increase should be 5%.
• If rent is 21-30% less than market rate, the maximum rent increase should be 10%.
• If rent is 31-40% less than the market rate, the maximum rent increase should be 15%.
• If rent is more than 40% below market rate, the maximum rent increase should be 20%.

The move applies to public and private sectors in Dubai including private development areas and free zones, according to the official statement. The property market rate is to be determined by the Real Estate Regulatory Agency's (RERA) rent index.