Under this new law, property rent will remain unchanged for three years in Dubai - once approved
15 April 2021| Last updated on 15 April 2021
The new law is awaiting approval.
A new draft rental law will freeze rents for a three-year period to ensure that properties in Dubai are valued fairly, and to reduce disputes between tenants and landlords.
If approved, the change is expected to bring stability to Dubai's real estate market. The proposed draft rental law would also prohibit landlords and their agents from collecting commissions or other fees from tenants for administrative costs such as signing or renewing a contract.
"The new law stipulates that the real estate property owners may not increase the rent for residential properties before three years have elapsed since the date of signing the contract between them and tenants," said Sultan Butti Ben Mejren, Director General of the Dubai Land Department in January.
He added that the new law would give a fair amount of equality to the rights of all renters and landlords.
The three-year fixed rent is expected to boost investments in Dubai and increase the occupancy rate of Dubai real estate properties, said the Dubai Land Department
"This law will help stabilize tenants in Dubai, as it gives them a good alternative, away from moving out every year in search of cheaper properties, in addition to annual increases in rental amount, as is currently the case," he continued.
At the moment, it hasn't been confirmed of the rental law would apply to lease renewals, or for new rental contracts only. ExpatWoman will update this page as more details are released.
Once the new law has been signed and put into effect, officials will issue a notice with guidelines.