Decree
No. (43) of 2013
Determining
Rent
Increase for Real Property in the Emirate of Dubai[1]
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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.
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.
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.
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.
This
Decree comes into force on the day on which it is issued, and will be published
in the Official Gazette.
Mohammed
bin Rashid
Al Maktoum
Ruler
of Dubai
Issued
in Dubai on 18 December
2013
Corresponding
to 15 Safar 1435 A.H.
©2020 The Supreme Legislation Committee in the
Emirate of Dubai
[1]Every effort has been made to produce an
accurate and complete English version of this legislation. However, for the
purpose of its interpretation and application, reference must be made to the
original Arabic text. In case of conflict, the Arabic text will prevail.