- About RERA
- What Is the RERA Rent Calculator
- How to Use the RERA Rent Calculator Online
- Permitted Rent Increase as per Rental Price Index
- FAQs
Rent is often the primary expense for many households, leading tenants to want to pay as little as possible to ensure the best value for their money. So, how do you find out whether you’re overpaying or underpaying your rent? That’s exactly where the RERA Rental Increase Calculator comes in handy. Our guide has all the details.
About RERA
For those unfamiliar with RERA, the Real Estate Regulatory Agency is part of the Dubai Land Department (DLD), which regulates the relationship between a landlord and a tenant. RERA is the regulatory authority for all organisations and individuals involved in Dubai’s real estate sector.
What Is the RERA Rent Calculator
One key aspect that RERA is responsible for is maintaining and updating the Rental Price Index in Dubai. This database documents the average rental prices and is updated yearly to maintain transparency in rental transactions across properties for rent in Dubai.
To make the Rental Price Index easily accessible and user-friendly for UAE residents, RERA introduced an online service, the ‘Rental Increase Calculator.’
Often wrongly called the RERA calculator index, the RERA calculator helps users identify the possible rent increase and the average ‘trending’ rent of any area in Dubai.
The RERA Rental Increase Calculator online service is free for all residents in Dubai and is an effective way to make informed decisions about renting in the emirate.
Let’s look at how the RERA rental increase calculator in Dubai works.
How to Use the RERA Rent Calculator Online
You can use the RERA calculator regardless of whether you want a 1-bedroom flat for rent in Dubai or a larger villa. The RERA calculator is easy to use and compares your property’s price with the average costs of similar properties in your area.
To use it, go to the Rental Index service under eServices on the Dubai Land Department website. You can also reach it through the Dubai REST app. Have the following details ready before you start:
- Contract expiry date
- Property type (residential, commercial or industrial)
- DEWA (Premise No.), Ejari Contract Number or Area name
- Unit type (apartment, villa or hotel apartment)
- Current annual rent
Steps to Use the Calculator
Once you have the information, follow these steps to use the RERA rent calculator.
1. Log in to the Dubai REST app or visit the Dubai Land Department’s official website to access the RERA rent increase calculator
2. Open the “Inquiry about the Rental Index”
3. Select “Access This Service” and choose your property type
4. Enter all the relevant information into the RERA rent calculator
5. Click the ‘Calculate’ button to get your result
6. Once you click the ‘Calculate’ button on the RERA calculator, the screen will show you the average rents in your area for your selected property type and whether you are eligible for a rental increase.
Smart Rental Index Update 2025
On 2 January 2025, DLD launched the Smart Rental Index, which rates each building and sets renewal increases from 0% to 20%.
Aiming for a fairer and clearer rental market, the Real Estate Regulatory Agency (RERA) launched an improved RERA rent increase calculator on March 1, 2024.
This updated tool provides a more accurate reflection of current market prices. With this clearer picture, both landlords and tenants can enter rental negotiations with a better understanding of what’s fair in today’s market.
Permitted Rent Increase as per Decree No. 43 of 2013
Under Decree No. 43 of 2013 and DLD’s Smart Rental Index, a landlord can follow this framework.
- The rent cannot be increased if the current annual rent is less than 10% below the market value.
- If the current rent is between 11% and 20% below the market value, the landlord can increase the rent by up to 5%.
- If the current rent is between 21% and 30% below the market value, the landlord can increase the rent by up to 10%.
- If the current rent is between 31% and 40% below the market value, the landlord can increase the rent by up to 15%.
- If the current rent is more than 40% below the market value, the landlord can increase the rent by up to 20%.
- No rental increase is applicable if you are already paying within the range mentioned.
Example: if similar units average AED 100,000 a year and you pay AED 75,000 (25% below), the landlord can raise the rent by up to 10%, to AED 82,500.
Source: Decree No. 43 of 2013 Determining Rent Increase for Real Property
Conclusion
Use the RERA rental increase calculator before renewing to check whether a rent increase is allowed and by how much.
FAQs
When Is a Rent Increase Allowed?
A landlord can raise the rent only when renewing the contract, and only if the current rent is more than 10% below the Rental Index average for similar units. According to the rules, the landlord must inform the tenant about increasing rental prices at least 90 days before the contract renewal. If this condition is not met, the tenant can reject the increase.
How Can Landlords Use the RERA Rental Index Calculator?
Landlords should use the RERA calculator to determine whether they are eligible to increase the rents of the housing units they are leasing. According to the current RERA Tenancy law, landlords can only demand a rental price increase three months before the expiry date of a rental contract.
What Are the Rights of a Tenant if a Landlord Fails to Comply With the Rules?
As a tenant, you should remember that if your landlord fails to comply with these rules, you can reject the rental increase. If the RERA rent calculator suggests that the asking rent is well over the range mentioned, you can complain to your landlord and request a decrease.
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