Win up to AED 150,000 in mortgage repayments for a year!
rera index calculator

How to Use the RERA Index Calculator in Dubai: A Complete Guide for Tenants And Landlords

Blogs
Table of contents

Thinking about buying a home? We've got you covered

Get expert advice today

If you've ever rented a property in Dubai, you've likely asked yourself: "Is this rent increase even legal?" With rental prices constantly shifting across different neighborhoods, it can be hard to know what's fair and what's not. That's where the RERA Index Calculator steps in.

Launched by the Real Estate Regulatory Agency (RERA) under Dubai Land Department (DLD), this tool helps both tenants and landlords understand whether a proposed rent increase complies with the law. It's quick, free, and incredibly useful, but many people don't know how or when to use it.

In this article, we'll explain what the RERA Index Calculator is, how it works, and why it's an essential tool for anyone renting or leasing a home in Dubai.

What Is the RERA Index Calculator?

The RERA Index Calculator is an online tool developed by Dubai's Real Estate Regulatory Agency to regulate rent increases and maintain balance in the city's rental market.

Its main purpose is to determine whether a rent increase is justified according to current market averages.

It does this by comparing your current rent with similar properties in your area. If your rent is already close to or above the market average, your landlord is not allowed to raise it. On the flip side, if your rent is significantly below market rate, a rent increase may be allowed but only within clearly defined limits.

Why This Calculator Matters (Especially in 2025)

Dubai's rental market is one of the most active in the region, and it's only gotten more competitive in 2025. New developments, returning expats, and a growing population have pushed rents up in many neighborhoods. In response, Dubai Land Department introduced the Smart Rental Index, an enhanced version of the rent calculator powered by real-time data and AI.

This upgrade means the RERA Index Calculator now uses updated, more accurate data to reflect current trends. So whether you're renewing a contract or just trying to understand your rights, it's more relevant than ever.

When Should You Use the RERA Calculator?

Knowing when to use the calculator can save you a lot of stress and potentially a lot of money.

Here are the most common scenarios:

  • Before renewing your lease, check if a rent increase is allowed and how much it could be.
  • After receiving a rent hike notice, verify if the proposed amount is legal.
  • Before signing a new rental agreement, understand what the average rent is for that type of property.
  • During a rent dispute, the calculator serves as an official reference point during mediation or legal proceedings.

How the RERA Calculator Works: Step-by-Step

Using the calculator is straightforward. You don't need to sign up or pay a fee. Here's how it works:

  1. Visit the Dubai REST app or the official Dubai Land Department website.
  2. Look for the "Rental Index Calculator" tool.
  3. Fill in a few key details:

Once submitted, the calculator will return:

  • The average market rent for similar properties in your area
  • Whether your current rent is within, below, or above the average range
  • The maximum allowable increase, if any
Image

What the Results Mean

So, how do you interpret the results? It all comes down to how your current rent compares to the market average. Here's a simplified version of the rule:

Rent Compared to Market Value Maximum Allowed Increase
Less than 10% difference 0% increase
11% - 20% lower Up to 5% increase
21% - 30% lower Up to 10% increase
31% - 40% lower Up to 15% increase
More than 40% lower Up to 20% increase

Let's say you're paying AED 60,000 for a 1-bedroom apartment in Jumeirah Village Circle, but the market average is AED 80,000. That's a 25% gap, so your landlord can legally raise the rent by up to 10%.

However, any increase must be accompanied by a written notice at least 90 days before the contract's renewal date. If the landlord fails to do so, you are not legally obliged to accept the new terms.

Real-Life Example

Imagine you're a tenant in Business Bay. Your one-bedroom flat currently rents for AED 70,000. You receive a renewal offer for AED 80,000, an increase of nearly 15%.

You head over to the RERA calculator, plug in your details, and find that the market average for similar units is AED 75,000. Your current rent is only about 7% below market value. That means no increase is allowed.

Armed with this information, you can confidently challenge the hike or take it to the Rental Dispute Center if needed.

What the Calculator Doesn't Do

While the RERA Index Calculator is incredibly helpful, it's not perfect. There are a few things it doesn't consider:

  • Furnishings, whether the property is furnished or unfurnished
  • Condition of the unit, a newly renovated apartment vs one in poor shape
  • View or location within the building, such as higher floors or corner units
  • Additional amenities like pools, gyms, or smart home tech

So while the calculator gives a solid benchmark, you should still consider these factors when negotiating.

What If There's a Disagreement?

If a landlord insists on a rent increase that goes beyond the calculator's limits, tenants have the right to file a complaint with the Rental Dispute Center, part of the Dubai Land Department. This center uses the RERA calculator's results as a reference during dispute resolution.

In 2025, new guidelines have made this process even more tenant-friendly. Complaints can be filed online, and cases are typically resolved faster than in previous years. However, make sure to gather documentation like your tenancy contract, the RERA result, and the rent hike notice.

Tips for Tenants and Landlords

For Tenants:

  • Always check the calculator before signing or renewing a lease.
  • Remember the 90-day rule. If your landlord doesn't notify you in writing on time, the current rent continues.
  • Print or save a screenshot of your calculator result for future reference.
  • Don't be afraid to negotiate. Even if a small increase is allowed, you're not required to accept it without discussion.

For Landlords:

  • Use the calculator to ensure your proposed rent increases are compliant.
  • Provide proper notice and clear documentation to avoid disputes.
  • Offering additional upgrades or improvements to the property can justify a slightly higher rent, even if the increase is capped.
  • Build trust by communicating transparently with your tenant.

Conclusion

Tools like the RERA Index Calculator give you the power to make informed decisions.

For tenants, it's your best defense against illegal or exaggerated rent hikes. For landlords, it's a reliable way to stay within the law and maintain good tenant relationships. And for both sides, it fosters transparency and trust in one of the world's most fast-paced real estate markets.

With Dubai's Smart Rental Index now powering the calculator, the data is more accurate and the outcomes fairer than ever. So before you sign anything, check the calculator. You'll be glad you did.

Thinking about buying a home? We've got you covered

Get expert advice today

Share this post
TwitterLinkedInFacebookWhatsApp

Related articles

Villa vs Townhouse: Which One Should You Buy?
11 Mins Read

Villa vs Townhouse: Which One Should You Buy?

Dubai vs Abu Dhabi: Real Estate And Lifestyle Comparison for Buyers and Residents
14 Mins Read

Dubai vs Abu Dhabi: Real Estate And Lifestyle Comparison for Buyers and Residents

Cohabitation Laws in Dubai: What You Need to Know Before Living Together
9 Mins Read

Cohabitation Laws in Dubai: What You Need to Know Before Living Together