Sharjah rent law: no rent increase for three years and new eviction grounds

In September 2024 Sharjah replaced its 2007 tenancy law with Law No. 5 of 2024. The new rules tilt the balance towards tenants, and anyone looking at Sharjah as a lower-priced alternative to Dubai should build them into the numbers before buying, not at the first renewal.

Three years at the same rent

A landlord cannot raise rent during the first three years of a lease unless the tenant agrees. If the tenant does accept a rise within that period, the next one cannot come for another two years. After the protected period, a new rent has to reflect fair market value. The same three years protect a residential tenant from landlord-initiated eviction; for commercial, industrial and professional premises the period is five years.

When eviction is possible

• rent unpaid 15 days after the due date;
• a breach of contract not remedied within 30 days of notice;
• unauthorised subletting or assignment;
• illegal use of the premises;
• demolition, rebuilding or comprehensive maintenance.

An owner can reclaim a unit to live in, but only with no other suitable home in the same municipality, at least three months’ notice, moving in within two months and staying for at least a year. The landlord must have the lease ratified within 15 days of signing.

Sharjah against Dubai

	Sharjah (Law 5/2024)	Dubai
Rent increase	Not before 3 years without consent	At each renewal, 0–20% per the building index
Eviction for arrears	15 days late	30 days after formal notice
Own use	3 months’ notice, live there a year	12 months’ notice, no re-letting for 2 years

What it means for an investor

Treat Sharjah rent as fixed for three years. The starting rent matters more than in Dubai: letting slightly under market to fill a unit quickly locks the discount in for the whole cycle. A long, stable tenancy lowers voids and letting costs, which suits a conservative strategy, but in a rising market Sharjah gives up flexibility, and a unit with a protected lease is harder to sell than a vacant one.

A worked example with mortgage finance is in Sharjah as an arithmetic exercise: 7.2% yield against a 4% loan; Dubai’s rules are covered in our guide to eviction and the 90-day rule.

Districts, projects and buying rules for the emirate are on Property in Sharjah.