By Mohamed Ghanem
Lawyer I LLM I Lecturer I Speaker I DIAC Arbitrator
January 31, 2025
The RDC recently issued a judgment in a rental increase case where the plaintiff sought a 20% increase in the annual rent of a residential unit in Palm Jumeirah, based on an appraisal by a real estate expert.
The plaintiff notified the tenant with 90 days’ notice about the proposed rent increase.
The court appointed a real estate expert to assess the fair rental market value. The expert determined that the average rent for similar units in the building per year represented a 74% increase over the current rent.
The expert’s report found that the rented unit did not have additional features such as a balcony or swimming pool but did have a larger floor area than some comparable units.
The court relied on the Real Estate Regulatory Agency (RERA) Index to determine the maximum allowable rent increase of 5%, which is regulated based on the difference between the current rent and the market average rent.
Judgment Issued:
The court applied the RERA Index to determine the percentage of the rent increase, concluding that the difference between the current rent and the market average placed it in the category allowing a maximum increase of 5%.
#RERA #RDC #DLD #DUBAIREALESTATE