Dubai’s Rental Index serves as a guideline for new lease agreements; however, it becomes legally binding in the event of a dispute between landlord and tenant to determine permissible rent increases upon contract renewal.
According to Law No. (33) of 2008, rental value is determined based on four key factors: location, technical classification, available services, and overall market conditions.
As for rental increase percentages, they are calculated according to the difference between the current rent and the average market rent, ranging from 0% to 20%.
Regarding the security deposit, it is paid to guarantee the condition of the rented property. If damages occur, repair costs are deducted from the deposit, and if the damages exceed the deposit value, the tenant must cover the difference.
However, minor wear and tear resulting from normal daily use—such as small ceramic scratches or wall marks from furniture—does not justify deductions, allowing the tenant to recover the deposit in full.
Termination of a lease contract cannot be carried out unilaterally by either the landlord or the tenant during the contract period unless both parties mutually agree or legal eviction conditions are met in accordance with the law.
