Can Rents in Dubai Be Raised Every Year? Calculations Are Explained

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Rent Increase in Dubai

Five Best Recommendations on How Tenants in the Emirate Can Save Big In The Event Of a Rental Increase

With rent increases in Dubai reaching historic highs in 2022, tenants are receiving notices of increases ranging from 15% to 20% this year.

According to Sarah Hewerdine, head of marketing at agency-owned real estate website Houza, accepting rent hikes can be a “difficult period” for tenants. They should be aware, however, that the RERA (Real Estate Regulatory Agency) rent calculator is there to safeguard consumers and that there are always areas where they may save money.

She stated that the normal length for an Ejari agreement is 12 months, with the landlord having the authority to increase the rent each year as long as it is consistent with the RERA formula. Caps have been imposed by the regulator to protect tenants “in a market as dynamic as we are now.”

There is no increase if the rent is 10% less than the market value.

  • If it is 11-20% lower, the significant increase might be up to 5%
  • If it is 11-20% lower, the max increase might be up to 5%
  • If it is 21-30% lower, the max increase may be up to 10%
  • If it is 31-40% lower, the maximum increase may be up to 15%
  • If it is less than 40% or greater, the maximum increase may be up to 20%

5 Money-Saving Strategies

Based on an interview with Houza’s Hewerdine, Khaleej Times has compiled five recommendations that tenants in Dubai can take to save money on rent:

1.    Move Out Of Core Areas:

This can help you save money on rent, but it will necessitate some compromise in terms of location.

2.    Make A Compromise:

If you want a high-quality grade building with a wonderful gym and pool but are unwilling to pay the price, moving further out is your best chance. If you are willing to compromise on apartment quality but still want to reside in the heart of Dubai Marina. There are lots of alternatives in some of the older buildings.

3.    Bargaining:

Perform your due diligence on current market rents.

4.    Cheques & Rental Discounts:

If you were formerly paying in four cheques and now just need one or two, request a lower rental increase and elect to pay in larger installments. 

5.    Maintain A Positive Relationship With Your Landlord:

Ultimately, a landlord wants as little difficulty from a tenant as possible. Therefore, if you are able to make their lives easier, you will be in a better position to negotiate.

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