Navigating New Rental Contracts & Regulations: What Every Tenant Should Know in 2024
November 01, 2024
Dubai has solidified itself as a premier real estate destination, thanks to its modern infrastructure, luxury lifestyle, and tax-friendly environment. New regulations now aim to balance growth and stability, particularly in the rental sector. Updated tenant rights, rental cap policies, and visa reforms are reshaping the landscape for long-term lease agreements. This guide explores the current legal landscape, tenant protections, and tips for securing favorable rental terms.
RERA and The New Rental Index
RERA (Real Estate Regulatory Agency) regulates Dubai’s real estate sector, setting standards for tenancy contracts and rental adjustments. The 2024 Rental Index now allows rent increases based on current market values, classifying properties by location and type. This ensures rent adjustments reflect market conditions, preventing arbitrary increases. RERA caps rent increases based on how much the rent is below market value, bringing clarity to rental pricing.
Dubai’s Rent Increase Law allows rent increases once per year upon lease renewal, with a mandatory 90-day notice from landlords. If notice isn’t provided, no increase can occur that term. Notice periods are as follows: lease violations (30-90 days), evictions without violations (12 months), and evictions upon lease expiry (90 days). Landlords cannot evict solely to re-rent at higher prices.
Disputing Unfair Rent Increases & New Visa Reforms
Dubai’s Rent Increase Law allows rent increases once per year upon lease renewal, with a mandatory 90-day notice from landlords. If notice isn’t provided, no increase can occur that term. Notice periods are as follows: lease violations (30-90 days), evictions without violations (12 months), and evictions upon lease expiry (90 days). Landlords cannot evict solely to re-rent at higher prices.
New visa reforms have encouraged long-term leases and homeownership. Foreign investors can secure long-term visas through property investments, with a 10-year Golden Visa for those investing AED 2 million or more. This stability allows tenants to negotiate leases confidently, benefiting both landlords and tenants with stable, predictable rental agreements. Dubai’s tax-free environment and investor-friendly policies continue to attract global interest, positioning it as a top destination for real estate investment.