The Real Estate Regulatory Agency (RERA), under the Dubai Land Department (DLD), oversees the rental market in Dubai. They provide a useful tool known as the RERA rental index. This calculator helps tenants and landlords determine fair rental values based on current market trends.
What is the RERA Rental Increase Calculator?
The RERA index, which is updated annually, takes into account the following variables to calculate the permitted rent increase: Should the annual rent be below 10% of what it would fetch on the market at this time: Rent increases are not allowed. If the current annual rental amount is between 11% and 20% below the market value, then: Increases in rental income are limited at 5%.
Benefits of using the RERA Rent Calculator in Dubai
Tenants benefit by being able to confirm whether a rent increase is justified, and landlords can justify their rental adjustments within legal limits.
What is the RERA Rental Increase Law in Dubai?
The categorization of rent rises is as follows:
- If the rent is less than 10% below market value, there won't be a raise.
- If rent is 10–20% below market value, there may be a 5% increase.
- If rent is 20–30% below market value, there may be a 10% increase.
- If rent is 30–40% below market value, there may be a 15% increase.
- A rise of up to 20% in cases when rent is over 40% below market value.
Practical Example
Consider that you are renting a two bedroom apartment in Dubai Hills Estate. The annual average rent value in 2023 is between AED 86,000 and AED 106,000. Your landlord is legally allowed to raise your rent by up to 20%, to AED 72,000, if it is currently substantially below market value at AED 60,000.
Function of the RERA Index Calculator
The rent calculator provided by RERA is essential to maintaining equity and openness in Dubai's rental market. It evaluates if a proposed rent is within the permitted range by taking into factors including the type of property, location, and number of bedrooms. For example, the calculator will indicate how much, if any, rent can be increased if the rental income of a property is much below the average rate in the market.
How to Use the RERA Calculator in Dubai?
The RERA calculator is simple to use. Here's how:
1. Access the Calculator: Visit the DLD website or download the Dubai REST App.
2. Choose Your Tab: Options include Title Deed Number, Ejari Contract Number, residential, commercial, industrial, staff accommodation, or location map.
3. Enter Required Information: Depending on your chosen tab, you may need to enter details like the current rent, contract number, certificate year, property type, area, and number of bedrooms.
4. Calculate Rent: Click on “Calculate Rent” to get the average annual rent based on current market trends.
Conclusion
An essential tool for navigating Dubai's rental market is the RERA rent calculator. It guarantees that landlords and tenants follow fair practices and are well-informed. You may prevent conflicts and make wiser rental selections by utilizing this calculator.
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Frequently Asked Questions (FAQ)
Can a Landlord Increase Rent in Dubai?
Yes, with a 90-day notice and usually at contract renewal, landlords are able to raise rent in accordance with RERA requirements.
What Happens if the Rent Increase is Unreasonable?
You may appeal the increase at the Rental Dispute Settlement Center if you think it is unfair. You may support your case by providing evidence from the RERA calculator.
How Much Can My Rent Increase By?
The amount depends on how much lower your current rent is compared to the market value, ranging from no increase to a maximum of 20%.
How much rent increase is allowed in Dubai?
Although there is a 20% limitation on rent increases, actual rent increases may differ depending on the current condition of the market. Within the regulations of the law, rent increases may be greater in a rising market and less in a stable or declining market.
How often is the RERA rental index updated?
The RERA rental index is updated annually. The amount of rent increase is determined by how much your current rent is less than the average market rent for your location. There is no increase applicable if the current yearly rent is less than 10% of the estimated market value.
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