Driven Properties LLC
Dubai Area Guides

Everything You Need to Know about RERA Rent Calculator Dubai

Last modified on 1st July 2024. Dubai Real Estate Blog

By Ward Mohammad

5 minutes read

Everything You Need to Know about RERA Rent Calculator Dubai

As your lease renewal approaches, you might be concerned about the likelihood of a rent increase from your landlord. To streamline leasing processes for tenants, the Dubai Land Department has implemented an online rental index, offering transparency regarding potential increases in rental fees.

The RERA rent calculator is a free, user-friendly tool designed to give tenants a better understanding of potential rental adjustments upon lease renewal. It ensures any rental increases are within legal boundaries for landlords and tenants, enabling both parties to make an informed decision.

About RERA

The Real Estate Regulatory Authority (RERA) is a division of the Dubai Land Department dedicated to overseeing the real estate sector. As a government agency, it establishes and enforces laws and regulations, supervises market development, and sets guidelines for foreign investors in Dubai. The RERA Rental Index is a valuable indicator used to determine whether tenants are paying a fair amount for their rental property.

RERA Rental Increase Law in Dubai

RERA encourages tenants and landlords to use the Rental Increase Calculator during lease negotiations. New and existing tenants should check the Rental Price Index using the RERA rent calculator; meanwhile, landlords are advised to use the RERA calculator to determine the appropriateness of rent increases.

Per local regulations, landlords can only increase rent once a year and must notify tenants 90 days in advance. You can use the online RERA rent calculator to verify if an increase falls within this permissible range.

Notably, landlords can only increase annual rental prices based on how low the current price is compared to the market value:

  • 11%-20% below market value: 5% maximum rental increase
  • 21%-30% below market value: 10% maximum rental increase
  • 31%-40% below market value: 15% maximum rental increase
  • 40% or more below market value: 20% maximum rental increase

How to Use the RERA Rent Calculator

  • Visit the RERA Rental Index on the Dubai Land Department’s official website.
  • Choose the property type (residential, commercial, industrial, or staff accommodation).
  • Fill in all the required fields – these vary depending on your property type.
  • Click `calculate` after confirming the `Captcha` verification.

The calculator will then provide information on:

Dubai`s current rent increase guidelines.

Current rentals in your neighborhood for your specific property type (e.g., one bedroom, studio, villa).

Looking to Rent?
PROPERTY FOR RENT IN DUBAI APARTMENTS FOR RENT IN DUBAI
VILLAS FOR RENT IN DUBAI TOWNHOUSES FOR RENT IN DUBAI
SHORT TERM RENTALS IN DUBAI STUDIO APARTMENTS FOR RENT IN DUBAI
Looking to Buy?
PROPERTIES FOR SALE IN DUBAI APARTMENTS FOR SALE IN DUBAI
VILLAS FOR SALE IN DUBAI TOWNHOUSES FOR SALE IN DUBAI
PENTHOUSES FOR SALE IN DUBAI OFF PLAN PROPERTIES DUBAI

The maximum allowable rent increase based on the established rental increase standards.

FAQs around RERA Rental Index in Dubai -

How is the RERA rent increase calculated?

RERA’s calculations use an annually updated database of average rental prices. If your current rent is lower than the market average, the landlord may have the right to increase it upon lease renewal.

How does the RERA rental increase calculator work?

After filling in the required fields on RERA’s official website, the calculator provides you with a current comparison of rental prices within the area for your specific property type. Based on these values, the calculator will then determine the maximum allowable rent increase.

How much can rent be increased in Dubai?

While annual rent increases in Dubai don’t typically exceed 5%, rates of 10%, 15%, or 20% may apply depending on current market values. The RERA rental index is updated annually and uses the following approach:

  • If the current annual rent is below 10% of the market value, there is no increase applicable.
  • If the current annual rent is between 11%– 20% below the market value, the maximum rental increase is 5%.
  • If the current annual rent is 21%–30% below the market value, the maximum rental increase is 10%.
  • If the annual rent on the property is 31%–40% below the market value, the maximum rent increase is 15%.
  • If the annual rent on the property is more than 40% below the market value, the maximum rent increase is 20%.

What do I do in the event of illegal rent increases?

If your rent exceeds the limit of the RERA Rental Index, contact the Dubai Land Department`s Rental Dispute Center at (800) 4488 to report the issue.

When is a rent increase allowed?

Per local regulations, landlords are allowed to increase rent once a year and must notify tenants 90 days in advance. You can use the online RERA rent calculator to verify if an increase falls within this permissible range. 

Where can I complain about my landlord in Dubai? 

If resolution attempts fail, file a RERA complaint at the Dubai Land Department`s Rent Disputes Settlement Center in Deira.

Interested in renting property in Dubai?

Reach out to one of our experienced real estate agents in Dubai to streamline your rental journey. With in-depth insights into Dubai’s real estate landscape, we’ll ensure you pay a fair price for your property.

Whether buying, selling, or renting in Dubai, get to know all RERA forms and their purpose in the property market. Stay updated on property-related information about Dubai and the UAE by following Driven Properties.

For up-to-date information on real estate regulations, market developments, and related topics, follow the Driven Properties blog!

You may also like to read

Latest Posts