The recent update to the Real Estate Regulatory Authority (RERA) index in Dubai, allows landlords to increase rents upon tenancy renewal. While some tenants have already experienced rent hikes, many won’t face higher rents until later in 2024 or early 2025 when their contracts end. The revised index is expected to close the gap between renewal prices and market prices, potentially leading to more tenants seeking new rentals or buying property. Additionally, landlords will be required to attach a judgment or legal order for rent evaluation services starting April 1, 2024.

This revision aims to address the disparity between renewal prices and prevailing market rates, aligning rental values more closely with market conditions. Consequently, tenants may find themselves evaluating their rental options more actively, either by seeking alternative accommodations or contemplating property ownership.

A noteworthy change accompanying this update is the requirement for landlords to furnish a judgment or legal order for rent evaluation services, effective from April 1, 2024. This mandate aims to ensure transparency and fairness in the rent adjustment process, providing tenants with a clear understanding of the basis for any proposed rent increases. 

Overall, the updated RERA index reflects the evolving dynamics of Dubai's real estate market, emphasizing the need for landlords and tenants alike to stay informed and adapt to these regulatory changes.