The Dubai property market may fluctuate with rental prices adjusting to supply and demand of the market. As a tenant, one of your biggest worries is whether your rental price will be adjusted when your term comes to an end. This is where the RERA Rent Calculator comes in handy.
The Real Estate Regulatory Authority (RERA) of the Dubai Land Department (DLD) regulates the hike in rent levels to stabilize both the tenant and the landlord. To make the two parties aware of their rights and obligations, RERA offers a rental hike calculator, where it identifies whether a planned rental hike complies with the law or not.
Let's discuss how this calculator functions, what are the latest updates, and how you can employ it to protect your rental budget.
What is the RERA Rent Calculator?
The RERA Calculator is an online calculator that enables the tenant and the landlord to determine the maximum allowed increase in rent based on the location, category, and existing rental value of the property.
This calculator employs the RERA Rental Index, which is revised each year to capture market trends. If rent is able to be increased, the calculator calculates the percentage based on how much lower or higher your current rent is than the market rate.
The application is on the Dubai Land Department (DLD) website or the Dubai REST app and serves as a legal guide to altering rental prices.
How Much Can My Rent Increase?
Under Decree No. 43 of 2013, the allowable rent hike is based on how much lower your rent is than comparable properties in your locality. Here's the formula:
- If your rent is lower than 10% of the market rate - No hike is allowed.
- If your rent is 11-20% lower than the market rate - A 5% hike is allowed.
- If your rent is 21-30% below the market rate - A 10% increase is allowed.
- If your rent is 31-40% below the market rate - A 15% increase is allowed.
- If your rent is above 40% below the market rate - A 20% increase is allowed.
These are the regulations so that rent hikes are kept reasonable and landlords won't be able to charge exorbitant hikes. These are the latest numbers but for any new update, head to the website.
How to Utilize the RERA Rent Calculator in Dubai?
It is easy to use the RERA index calculator and can be achieved in a few steps:
- Go to the DLD Website – Open the Dubai Land Department website or launch the Dubai REST app.
- Choose the RERA Rent Calculator – Select the one that best suits your case (Title Deed Number, Ejari Contract Number, or residential property information).
Enter Property Information – Enter details such as:
- Property type (flat, villa, business unit, etc.)
- Neighbourhood and area name
- Number of bedrooms
- Current annual rent
- Tenancy agreement expiry date
- Calculate Your Rent – Your rental index for your local area will be calculated automatically by the system and tell you if an increase is possible.
This tool provides landlord and tenant with clarity in the level of rent adjustment that can be legally applied to avoid arguments.
When Can a Landlord Raise the Rent?
If your property is subject to rent increase, your landlord has to inform you at least 90 days prior to your lease expiry date.
If the landlord does not give this 90-day notice, you are not bound to implement the increase even if it falls within the RERA Index calculator.
What to Do if Your Landlord Imposes an Illegal Rent Increase
Even though there are strict regulations, landlords try to hike the rent over the regulated amount. Here's how you can do it:
Use the RERA Index Calculator – Check whether the hike is within the law through the calculator.
Speak to Your Landlord – Present them with the authentic calculation so the possible hike becomes obvious.
Complain – If your landlord is requesting an unlawful rent increase, you can complain to the Dubai Rental Dispute Settlement Centre (RDSC).
The Dubai government is very much concerned with the rights of tenants, and tenants can complain against defaulting landlords who fail to comply with RERA rules.
2025 Updates - Smart Rental Index Calculator
Starting from January 1, 2025, Dubai introduced a new Smart Rental Index Dubai calculator that replaced the old one. The calculator serves to give a better, data-driven estimate of rent hikes to achieve a balanced harmony between landlords and tenants.
The new calculator considers variables such as age, condition, facilities, and neighborhood trends, none of which were included in the previous calculator. This provides an accurate rental estimate for greater transparency in the marketplace.
Example - How Rent Rises Operate in Dubai
If you pay AED 80,000 a year for a two-bedroom apartment in Dubai Marina, for instance, then the average price for an apartment similar to that one in the development might become AED 100,000 per annum.
Following are few pointers that will follow;
- Your rent is 20% less than the market price.
- Your landlord is allowed to hike the rent by 5% according to RERA regulations.
- Your new rent will be AED 84,000 a year.
However, if you were already paying AED 70,000 a year, which is 30% less than the average market rate, the increase will be 10%, raising your rent to AED 77,000 a year.
Such capped hikes keep landlords from giving you a ferocious, undeserved rent raise.
How to Find Out Your Rental Hike Status
To remain updated about possible rent adjustments:
- Visit the RERA rent calculator and RERA index calculator every year at the time of your lease renewal.
- Keep track of market trends within your locality.
- Seek advice from real estate agents if unaware of rental legislation.
The Dubai rental legislations are formulated in favor of tenants but enable landlords to adjust rents reasonably according to market trends.
The RERA Rent Calculator is a highly useful application that offers fair rental charging in Dubai. Knowing legal rent hikes, tenants are exempt from being exposed to staggering hikes, while landlords will not be victimized by RERA compliance.
With the newest Smart Dubai Rental Index Calculator, the rental market in the city has never been easier or more convenient. As a tenant or landlord, you will be able to make the right choice regarding rental deals and future property investments with this knowledge.
So, before you renew your next lease, head over to the RERA Rent Calculator Dubai and confirm yourself of the best deal!
Or drop us a mail at help@beno.com
