Understanding Dubai’s real estate market can be confusing for tenants and property owners alike. Therefore, in order to ensure fairness and clarity, the Real Estate Regulatory Agency (RERA) has set various laws to protect buyers, sellers, tenants, and landlords. One important tool they offer is the RERA Dubai Calculator or RERA rent calculator.
RERA rental calculator Dubai is an online tool designed to check if rent hikes are reasonable by comparing current rents with market standards. Here is everything you need to know about RERA rental calculator.
What is RERA Rent Calculator Dubai?
In Dubai’s real estate sector, RERA plays a crucial role in maintaining stability and fairness. It is a regulatory body under the Dubai Land Department (DLD) that establishes policies to ensure
- a balanced Dubai real estate market,
- attract foreign investments, and
- resolve disputes between landlords and tenants.
One of RERA’s key tools, the RERA Rent Calculator, is widely used across Dubai. This online tool helps both tenants and landlords verify the legality of rent increases by comparing current rental values with market standards. By regularly updating rental prices across various property types, RERA promotes transparency and facilitates informed rental decisions for those looking to rent properties in Dubai.
The users have to provide the following data points to the RERA Dubai calculator to calculate the desired results.
- Property Location
- Property size
- Property type (e.g., apartment/villa)
- Property category (e.g., residential/commercial/industrial/staff accommodation)
- Current market value of the property
- The ending date of the contract
- Total number of bedrooms in the property
- Current yearly rent
Once the users enter the details, the RERA Calculator Dubai compares other properties in the same area and determine whether the rental increase is according to the legal framework or not.
Understanding RERA Dubai Calculator—How RERA Rental Calculator Works
The annual increase in rental rates in Dubai depends on various factors like property location, type, and number of rooms. Here is how the calculator categorizes the increase in rents
- No increase if the current rent is 10% lower than the market value.
- A maximum increase of 15% if the rent is 31% to 40% lower than the market value.
- Up to a 10% increase if the rent is 20% to 30% lower than the market value.
- A maximum increase of up to 5% if the rent is 10% to 20% lower than the market value.
- An increase of up to 20% if the rent is 40% or more lower than the market value.
For example, if you currently rent a two-bedroom apartment in Dubai Hill Estate and your rent is 40% less than the market value, your landlord can increase your rent by up to 20%.
In order to calculate the potential increase, you can use the RERA rent index calculator by entering your current annual rent and contract end date. This tool will provide the amount of increase required when renewing your tenancy contract.
It is important to note that the annual rent values mentioned do not include additional costs such as electricity, water bills, or Dubai Municipality Housing fees.
How to Use RERA Dubai Rental Calculator—Step-by-step Guide
Using the RERA rent calculator is a simple process. Here is a step-by-step guide:
Prepare Required Information
Gather necessary documents and details such as property category, size, location, contract expiry date, and current yearly rent to avoid errors.
Access the RERA Rent Calculator Dubai
Go to the DLD RERA website and click on the “Inquiry about the Rental Index” tab to find the calculator.
Enter Information
Fill in the required fields provided on the website. Depending on whether you use a Title Deed Number or Ejari Contract Number, provide additional details like certificate or title deed number and year. Double-check everything before clicking “Calculate”.
Review the Results
The calculator will display the current rent and any potential increase. Both landlords and tenants can discuss and negotiate based on this information to ensure any rent adjustments adhere to RERA’s legal limits. The concerned party can contact RERA through written correspondence or in person at their office if needed.
In a nutshell, here is how to calculate rent increase using the RERA Dubai calculator.
Image Credit: DLD official website
- Go to the DLD website or REST app Dubai
- Open the Inquiry about the Rental Index” tab
- Click on the “Access this service” and choose your property type
- Once you enter all the necessary details, click on the “calculate” button to get the results.
Image source: DLD official website
A box like this will appear on your screen after clicking on the “calculate button.
If the rent increases, the calculator will show the percentage increase based on the factors mentioned earlier. You can save this information as a PDF and compare various areas and types of properties to find the best option for you.
Similarly, users can check the rental value of commercial and industrial units. For commercial or industrial properties, users need to enter the area in square feet instead of the number of bedrooms. The process for shared accommodation is similar to residential properties.
Factors That Affect the RERA Rental Index
In Dubai, RERA updates the RERA rental index and the RERA rent calculator annually to maintain the balance. Several factors influence the RERA rental index, include:
Location
The location of a property is crucial as it affects demand and supply dynamics. Prime areas like Downtown Dubai, Palm Jumeirah, and Dubai Marina have higher rents due to high demand and limited availability of exclusive properties.
Economic Factors
Economic conditions play a significant role. For example, a thriving job market and foreign investment can increase rental prices by attracting more people to Dubai. On the other hand, economic downturns may lead tenants to seek more affordable housing options that can lower the rents in certain areas.
Property Characteristics
The RERA rental index considers factors such as property size, living space, number of bedrooms, furnishings, maintenance quality, and amenities provided by landlords.
Benefits of Using RERA Rent Calculator Dubai
The main purpose of using the RERA rent calculator Dubai is to make the real estate sector transparent. It helps tenants confirm if a rent increase is reasonable and allows landlords to justify their adjustments within the legal guidelines.
There are several other advantages of using the RERA Dubai rent calculator.
Legal Compliance
Landlords must inform tenants about any changes in rent, including increases, at least 90 days before the contract renewal. This ensures tenants are not surprised by sudden changes to their rental agreements.
Informed Decision Making
The calculator provides clear and accessible data that allows investors or stakeholders to make informed choices. Landlords can set rents based on accurate market insights, while tenants can negotiate leases more effectively.
Verification
Tenants can easily verify if rent increases are fair, promoting accountability in the Dubai real estate sector.
Overall, the RERA rent calculator enhances transparency, supports legal compliance, and facilitates fair dealings between landlords and tenants in Dubai’s real estate market.
RERA Dubai Contact Number and Information
Address: 7868+Q6M, Baniyas Road, Deira, Near Etisalat Building, opposite to Sheraton Dubai Creek Hotel, Dubai, United Arab Emirates
RERA Dubai Contact Number: +971-4-203-0555
Office Hours: Monday to Thursday: 7:30 am to 3:30 pm | Friday: 7:30 am to 12:00 pm
Frequently Asked Questions
How much rent can be increased in Dubai as per RERA?
Rent increases are determined by how much lower the current rent is compared to the market value. For instance, if the rent is 11% to 20% below market value, the maximum allowable increase is 5%. If the rent is 21% to 30% below market value, landlords can increase the rent by up to 10%.
How do I check my rent increase in Dubai?
Both new and current tenants should use the RERA rent calculator to review the Rental Price Index. Landlords are also encouraged to utilize the calculator to assess whether rent adjustments are fair. According to local rules, landlords can raise rent annually but must inform tenants at least 90 days beforehand.
Can a landlord increase rent in Dubai?
Yes, landlords in Dubai can legally increase rent according to RERA tenancy laws. However, rent can increase two years after the lease begins, and tenants must be informed at least 90 days in advance of any rent hike.
How much rent can be increased in Dubai as per RERA?
In Dubai, allowable rent increases depend on the current rent compared to the rental index:
- There is no increase if the current rent is less than 10% below the index.
- Up to a 5% increase if current rent is 11% to 20% below the index.
- Up to a 10% increase if current rent is 21% to 30% below the index.
- Up to a 20% increase if current rent is more than 31% below the index.
Summing it up
The RERA Rent Calculator Dubai ensures fairness and transparency in the real estate market. It is an online tool from the Real Estate Regulatory Agency (RERA) that helps tenants and landlords verify rent increases against market standards. It requires inputs like property details, current rent, and contract end date.
Depending on how much below market value the current rent is, allowable increases range from 5% (for rents 10-20% below) to 20% (for rents 40% or more below). The RERA calculator helps make informed decisions and complies with Dubai’s tenancy regulations to promote stability and clarity in rental agreements.
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