Decree No. 2 of 2011

Decree No. 2 of 2011

Regarding Rentals in the Emirate of Dubai

We, Mohammed Bin Rashid Al Maktoum, Ruler of Dubai

After perusal of Law No. 26 of 2007 regulating Relationship Between Landlords

and Tenants in the Emirate of Dubai as amended,

And Law No. 16 of 2007 establishing the Real Estate Regulatory Agency,

And Decree No. 2 of 1993 establishing Special Judicial Committee for settlement

of disputes between landlords and tenants, as amended,

And Decree No. 42 of 2006 regarding rentals in the Emirate of Dubai,

And Decree No. 27 of 2007 regarding rentals in the Emirate of Dubai,

And Decree No. 1 of 2009 regarding rentals in the Emirate of Dubai,

And Decree No. 62 of 2009 regarding rentals in Emirate of Dubai,

Issue the Following Decree

Article (1 )

The maximum rent increase percentage of property units in the Emirate of Dubai

leased before the enforcement of this Decree shall be as follows:

a- There should not be any rent increase, if the rent for the real estate unit is

up to 25% below the average similar rent.

b- If the rent value was 26% to 35% less than the average similar rent: the

maximum rent increase shall be equal to 5% of such value.

c- If the rent value was 36% to 45% less than the average similar rent; the

maximum rent increase shall be equal to 10% of such value.

d- If the rent value was 46% to 55% less than the average similar rent; the

maximum rent increase shall be equal to 15% of such value.

e- If the rent value was less than 55% of the average similar rent; the

maximum rent increase shall be equal to 20% Of such value.

Article (2)

For the purpose Of this Decree the similar rent value Of the property unit means

pursuant to “The Rent Index of the Emirate of Dubai” approved by RERA.

Article (3)

This Decree shall be enforced from the date of its issuance and shall be

published in the Gazette.