The number of legal disputes between landlords and tenants has increased in Dubai

What has happened? Dubai’s increasing property prices – and consequent rental hikes and illegal evictions – are leading to a rise in legal disputes between landlords and tenants in courts across the emirate, experts told Al Arabiya English.

Context. The real estate market in Dubai experienced a recovery in 2022 and 2023, with the emirate's economy rebounding strongly from COVID-19. This has resulted in many residents facing skyrocketing rent increases. At the same time, cases of illegal eviction of tenants by owners became more frequent, as the latter sought higher incomes due to a sharp increase in property prices.

Details. Now a growing number of tenants are seeking to sue their former landlords for up to a year’s rent after being evicted from their home.

Dr Hassan Elhais, a legal advisor at Al Rowaad Advocates, told Al Arabiya English that Dubai Land Department’s Real Estate Regulatory Authority (RERA) is currently reviewing a flood of complaints filed by tenants against landlords. Al Arabiya English has seen examples of owners demanding a 50% rent increase from their existing tenants in order to renew their contracts or vacate the properties.

Some landlords' claims violate the government rent control regulations and tenants' rights.

The problem. The rent increases are limited to 20% per year, subject to changes in market prices in the given area. If the landlord and tenant agree to a higher increase in private negotiations, the increase in rental rates could exceed 20%. However, some landlords wanting more have been evicting their tenants to get new ones at inflated prices.

Quote. Rita Ayoub, associate at UAE law firm BSA, also told Al Arabiya English that, since the outbreak of COVID-19, the UAE real estate market has experienced an increase in demand, particularly in the Emirate of Dubai.

Rents have been steadily increasing, and landlords are capitalizing on these favorable market conditions to maximize their return on investment,” she said. “This trend in the real estate market is seen as a positive development for the UAE economy, as landlords are achieving higher rental returns, which attracts more investors to the UAE real estate sector. While at the same time, some landlords are taking advantage of the current situation by increasing the rental value of the properties beyond the RERA Index (a tool outlines the maximum allowable percentage increase in rent when a lease is renewed).”

Source: Al Arabiya

Photo by Piotr Chrobot on Unsplash

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