If you’re renting a property in Dubai, a rent increase notice can feel confusing and stressful. Without proper guidance, rent negotiations often lead to disputes. The RERA rental increase calculator removes guesswork by applying uniform rules across Dubai.
As a tenant, you can confidently challenge an increase that exceeds legal limits. Whereas landlords can justify a rent increase using official data rather than assumptions.
In this guide, you will learn how to use the RERA rental calculator and the rental increase laws in Dubai.
What Is the RERA Rental Calculator in Dubai?
The RERA rent increase calculator is an official online tool provided by the Dubai Land Department. It calculates whether a landlord can increase rent at renewal and by how much. The calculator works by comparing your current rent with the average market rent for similar properties in the same area.
This tool ensures rent increases follow Dubai tenancy law rent increase rules and protects tenants from unfair hikes while giving landlords a transparent framework to adjust rent legally.
How Does the RERA Rental Calculator Work?
Understanding how to use the RERA rental calculator is simple and only takes a few minutes.
You need to enter details such as the property type, location, number of bedrooms, and your current annual rent. Once submitted, the calculator shows whether a rent increase is allowed and the maximum percentage that can be applied.
The result reflects the RERA rental calculator percentage based on how far your rent is below the average market rate.
Understanding Rent Increase Rules in Dubai
- When the current rent is less than 10% below the estimated market value, no rent increase is allowed.
- If rent is 10% to 20% lower than market value, the maximum increase can be up to 5%.
- The maximum increase may be up to 10% if the rent is 20% to 30% below market value in the area.
- Up to a 15% increase in rent if the rental value is 31% to 40% lower than the market value.
- If the rent is 40% or more below market value, the rent increase may be up to 20%.
Case in Point
If you are renting a one-bedroom apartment in Palm Jumeirah, the RERA Rental Index shows that the average market rent for similar units ranges between AED 148,348 and AED 181,314 per year.
Now, if you are already living in a one-bedroom apartment in the Sapphire building on Palm Jumeirah and your current annual rent falls within this RERA-defined range, the RERA rent increase calculator will show the result as ‘Not Applicable’.
Step-by-Step Process to Use the RERA Rental Increase Calculator
Using the RERA rental calculator is straightforward when you follow these detailed steps:
Step 1: Access the Official RERA Rental Calculator
Navigate to the Dubai Land Department’s official website at dubailand.gov.ae. From the main menu, select “Services” and locate the “Rental Index Calculator” option. This ensures you’re using the authentic RERA rent increase calculator with the most current market data.
Step 2: Select Your Rental Index Type
Choose between:
- Residential: For apartments, villas, and townhouses
- Commercial: For office spaces, retail units, and commercial properties
For most tenants and landlords, the residential option will be appropriate.
Step 3: Choose Your Area
Select the specific area or neighbourhood where your property is located. Dubai is divided into numerous zones, including:
- Palm Jumeirah
- Dubai Marina
- Downtown Dubai
- Business Bay
- Jumeirah Beach Residence (JBR)
- Arabian Ranches
- And many more
The area selection is crucial as rental values vary significantly across different Dubai locations.
Step 4: Specify Property Type
Select your property type:
- Apartment
- Villa
Step 5: Select Property Category
Choose the specific configuration of your property:
- Studio
- 1-bedroom hall
- 2-bedroom hall
- 3-bedroom hall
- 4-bedroom hall
- 5-bedroom hall and above
Step 6: Enter Building Name (If Applicable)
If your property is in a named building or development, enter or select the building name from the dropdown menu. This helps the calculator provide more accurate market data specific to your building.
Step 7: Review the Results
The RERA rental calculator will display:
- Rental Index Range: The market value range for similar properties in your area (showing minimum and maximum values per year)
- Amount of Increase: Whether a rent increase is applicable
- Percentage Increase: The permitted percentage increase (if any)
- Rent Amount after Increase: The new annual rent after applying the allowed increase
FAQs
- Can my landlord increase the rent in the middle of my tenancy contract?
No, rent increases can only be implemented at lease renewal, never mid-contract. Landlords must provide at least 90 days’ written notice before the contract ends and comply with RERA rental index calculator.
- What should I do if my landlord requests a rent increase higher than what the RERA calculator shows?
Use the RERA rental calculator to verify the maximum permissible increase and present the results to your landlord in writing. If they insist on a higher amount, file a complaint with the Rental Dispute Centre (RDC), which will issue a binding decision based on Dubai tenancy laws.
Understanding how to use the RERA rental calculator is essential for anyone involved in Dubai’s rental market. Whether you’re a tenant protecting your rights or a landlord ensuring fair returns on your investment, the RERA rent increase calculator provides the clarity needed to calculate rent increases in Dubai accurately and legally.
For more details on rental rules and regulations in Dubai, keep reading the best property blog in the UAE.
