Rent fluctuations are common in Dubai. They rise and drop depending on market conditions and factors like supply and demand. So, how do you make sure you’re not paying more than you should?
Come renewal time, tenants are likely to receive a notice of increase — after all, landlords have the right to hike rents every year. However, they cannot go beyond the rates indicated in the Dubai rental index.
This is where the online tool from the Dubai Land Department’s (DLD) Real Estate Regulatory Agency (Rera) comes in.
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Called the Rera calculator, it tells you the justified rental increase and average rates in the real estate market — all in just a few clicks.
Here’s a step-by-step guide:
- Step 1: Check your Ejari / tenancy contract
You will need to enter some details from your tenancy contract so keep it ready.
- Step 2: Go to the Dubai Land Department’s website (https://dubailand.gov.ae/)
Click on the ‘Services’ tab and then select ‘Popular Services’ or ‘Informative’. Look for the ‘Inquiry about the rental index’ option that will take you to the calculator.
- Step 3: Access the service
Once you click ‘proceed’ and ‘access the service’, you’ll find a form to fill out. Enter details about your residence: Contract End Date, Property Type, Area, Number of Bedrooms, and Current Annual Rent.
Click on the ‘calculate’ button and the result will pop up. It will tell you average rent for a property in your area and the maximum percentage of rent hike. You may export this result as a PDF.
How the increase is calculated
According to information available on the DLD website, here’s how the calculation works:
- If the rent is 10 per cent less than the market value, there is no increase.
- If it is 11-20 per cent lower, the maximum increase may be up to 5 per cent.
- If it is 21-30 per cent lower, the maximum increase may be up to 10 per cent
- If it is 31-40 per cent lower, the maximum increase may be up to 15 per cent.
- If it is lower than 40 per cent or more, the maximum increase may be up to 20 per cent.