Dubai tenants seek free parking as tariffs rise; rights depend on lease terms

A significant shift in parking dynamics is unfolding across Dubai’s residential landscape as tenants increasingly seek to incorporate parking spaces into their lease agreements. This trend emerges in direct response to the emirate’s implementation of a variable parking tariff system in April 2025, which has substantially increased public parking costs throughout the city.

The innovative parking management strategy employs dynamic pricing based on location, time of day, and demand levels, resulting in a 51% year-on-year increase in average hourly parking rates to approximately Dh3.03 by the third quarter of 2025. Premium zones including Downtown Dubai, Business Bay, Deira, and Jumeirah now command significantly higher peak-hour charges, though off-peak and overnight parking remain complimentary.

Legal experts emphasize that parking rights remain exclusively contractual matters rather than automatic entitlements. According to Igor Abalov, Managing Partner at Lawford Legal Advisors FZ-LLC, the lease agreement serves as the definitive document determining tenant rights. ‘The tenant’s ability to assert claims depends solely on what is expressly agreed and recorded in writing,’ Abalov stated, noting this represents one of the most frequently contested issues before Dubai’s Rental Disputes Centre.

Legal professionals distinguish between specific allocated parking spaces recorded in title deeds and general parking facilities provided as building amenities. Hassan El Agawani, an associate at BSA Law, clarified that ‘providing a parking space is not mandatory unless stipulated in the contract,’ adding that rising tariffs cannot override the principle of freedom of contract.

Dr. Hassan El Hais, a legal consultant, highlighted protective measures within Dubai’s regulatory framework, particularly referencing Law No. (6) of 2019 on Jointly Owned Property. This legislation prevents unit owners from leasing residential units separately from attached jointly owned parts, including parking spaces. The standardized Ejari tenancy contract template facilitates this process through its ‘Additional Terms’ section, allowing parties to insert specific parking allocations without additional costs.

For existing leases, amendments require mutual agreement through formally executed addenda. Article 14 of Dubai Law No. (33) of 2008 enables either party to request modifications with 90 days’ notice before contract expiration. In cases where landlords refuse to provide contractually agreed parking spaces, tenants may issue formal notices and escalate matters to the Rental Disputes Centre, potentially seeking rent adjustments or compensation.

As enforcement mechanisms tighten and parking expenses continue to climb, legal professionals stress that tenants who neglect to secure explicit parking rights upfront face substantially higher living costs throughout their tenancy periods, making precise contractual language increasingly crucial in Dubai’s evolving urban environment.