Dubai Real Estate

Dubai rentals, yield-first, not occupancy-first.

A rental should earn the best risk-adjusted net yield over the time you hold it. That shapes who you let to, the lease you sign and how you handle renewal.

The short answer

In Dubai, landlords must register every lease on Ejari and can raise rent at renewal only within Decree No. 43 of 2013: no increase if the rent is within 10% of the DLD index average, rising in steps to a 20% maximum. Changes to terms need written notice at least 90 days before expiry.

How much can a Dubai landlord raise the rent?

Dubai tenancies are governed by Law No. 26 of 2007, as amended by Law No. 33 of 2008, with disputes heard by the Rental Disputes Centre.

“…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…”

Dubai Decree No. (43) of 2013, Article 1(a)

  • Ejari registration is mandatory. An unregistered contract is hard to enforce, and tenants need Ejari for utilities and many residency processes.
  • Rent increases at renewal are capped by Decree No. 43 of 2013, using the DLD rental index. Use the official calculator on the DLD website before you propose an increase.
  • Notice: a landlord who wants to change the terms, including the rent, must give written notice at least 90 days before the contract expires.
Your rent compared with the index Maximum increase
Up to 10% below None
11–20% below 5%
21–30% below 10%
31–40% below 15%
More than 40% below 20%

Is long-term, furnished or short-term letting better?

Demand for short stays is real: Dubai welcomed 19.59 million international overnight visitors in 2025, up 5%, and hotel occupancy averaged 80.7%, according to Department of Economy and Tourism data reported by Gulf Business. Long-term demand rests on population: Dubai passed 4.58 million residents at the end of 2025, up 7.5%, per the Dubai Data and Statistics Establishment.

  • Long-term unfurnished: the simplest model, with predictable income and full tenancy-law protection.
  • Furnished long-term: a rent premium from corporate and executive tenants, offset by furnishing cost and wear.
  • Short-term holiday homes: require a Dubai holiday-home permit. Gross income can be higher in tourist areas, but platform fees, cleaning, management and seasonal vacancy take a large share. Compare net, not gross.

How should you screen a tenant?

The average renter in Dubai took 4.8 years to become a property investor in 2025, according to the Dubai Media Office, so many good tenants are long-stayers worth keeping.

  • Documents: passport, residence visa and Emirates ID, proof of income and recent bank statements.
  • Employment or business check: a direct reference from the employer, or a trade licence and banking history for the self-employed.
  • Previous landlord: payment record, care of the property and why they moved.

Done properly, this takes a day or two and avoids most disputes.

Lease terms that matter

  • Number of cheques and their dates.
  • Security deposit (commonly 5% of annual rent unfurnished, more for furnished).
  • Who pays for which repairs, with a clear threshold.
  • No sub-letting without written consent.
  • Renewal and notice wording that matches the law.

Renewal strategy

  • Hold slightly below market to keep a good tenant on a long hold, avoiding vacancy and fees.
  • Increase to the legal cap where the index allows it.
  • Reset with a new tenant only after modelling the vacancy, fees and the 90-day notice timing.

Sources

FAQ

Frequently asked questions

What is Ejari?

Ejari is Dubai’s official tenancy registration system, run by the Dubai Land Department. Registration makes the contract enforceable and lets tenants set up utilities and complete many residency processes.

How much can I raise the rent at renewal?

It depends on how far the current rent sits below the DLD rental index: nothing if it’s within 10%, rising in steps to a maximum of 20% if it’s more than 40% below. Give at least 90 days’ written notice before the contract ends.

Is short-term letting better than long-term?

Sometimes, in tourist areas and for well-located units. Once platform fees, cleaning, management, furnishing and vacancy are deducted, net results are often closer than the gross figures suggest. It also needs a holiday-home permit.

What happens if a tenant stops paying?

You serve formal notice, and if payment doesn’t follow you file at the Rental Disputes Centre. A lawyer or the property manager usually handles the case. Good screening prevents most of these.

Do you manage properties day to day?

No. I advise on strategy and help you choose and oversee a RERA-licensed property manager, who handles day-to-day operations.

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