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How long are tenancy contracts, and can they be renewed?

Most tenancy contracts in Dubai are for one year and can be renewed annually if both parties agree. The renewal process requires both parties to give 90 days’ notice for any changes, and rent increases must follow the Dubai Rental Index.

In Dubai, tenancy contracts are standardized to provide stability and flexibility for both tenants and landlords. Here’s a detailed breakdown of tenancy durations, renewals, and rent regulations:

               
  • Standard Tenancy Duration (1 Year): Most tenancy contracts in Dubai have a standard duration of one year, regulated by RERA. Shorter-term leases are less common and come at a premium.
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  • Notice Period for Renewal: According to RERA regulations, both parties must give a 90-day notice if they do not wish to renew the lease or if they want to adjust terms. Without notice, the contract renews automatically.
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Rental Increases: Rent increases follow the Dubai Rental Index, tracking rates by area and property type. Landlords can increase rent if it’s below market rate:

                   
  • If rent is up to 10% below market rate, no increase is allowed.
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  • If rent is 11-20% below, a 5% increase may be applied.
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  • Renewal Process: If terms remain unchanged, the contract is updated, re-signed, and re-registered with Ejari. Renewal typically takes 1-2 days and costs AED 220.
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This structure provides flexibility for both tenants and landlords while ensuring compliance with Dubai’s rental regulations.