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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.
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.
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.
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:
Using the calculator is straightforward. You don't need to sign up or pay a fee. Here's how it works:
Once submitted, the calculator will return:
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.
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.
While the RERA Index Calculator is incredibly helpful, it's not perfect. There are a few things it doesn't consider:
So while the calculator gives a solid benchmark, you should still consider these factors when negotiating.
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.
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.