As reported by recent news outlets, the Dubai Real Estate Regulatory Authority (RERA) reset its rent calculator at the start of this month, on March 1st.

Though initially alarming for those who rely on the rent calculator to shield themselves from rental hikes, the reset actually favors tenants in the long term. Analysts describe the recent rent calculator update as a mixed blessing for tenants seeking bargains, asserting that while rent increases may occur, they will be offset by the expansion of communities providing improved value for money.

About RERA rent calculator

The rental increase calculator serves as an online reference point, providing both tenants and landlords with transparency regarding possible rental increases.

The RERA rent calculator shows whether a rent increase is applicable and works by comparing properties with similar ones nearby. It shows whether or not a rent increase is allowed and uses criteria such as location, property type, current rent and number of rooms, and works by comparing properties with similar ones nearby.

Offering tenants valuable insights into potential rental adjustments upon lease renewal, this free online tool aids in understanding the fairness and reasonableness of rental payments for their properties.

Revised periodically to mirror current market rental rates for specific communities and buildings, the recalibrated RERA rent calculator, implemented on March 1, aims to better reflect open-market pricing.

Dubai rent calculator: How it works..

Rent increases are determined by comparing a tenant’s current rental agreement with the average rental market rate in their specific area of residence.

You will be required to fill out the necessary fields on the official website, and then the calculator will provide you with a comparison.

Tenants and landlords can access the calculator on the Dubai Land Department website.

Click here to check yours.

In accordance with Decree Number 43 issued by the Land Department, landlords are obligated to adhere to the following regulations:

1. If the rent is less than 10 percent below the average market rate, no rent increase is allowed.
2. For rents between 11 percent and 20 percent below the average market rate, a maximum increase of five percent is permitted.
3. For rents between 21 percent and 30 percent below the average market rate, a maximum increase of 10 percent is permitted.
4. For rents between 31 percent and 40 percent below the average market rate, a maximum increase of 15 percent is permitted.
5. If the rent is more than 40 percent below the average market rate, a maximum increase of 20 percent is permitted.

As per the Rera calculator, landlords are restricted from raising the rent by over 20 percent within a single year. Nonetheless, if both the landlord and tenant consent to a greater increase through private negotiations, it can surpass the 20 percent limit.

You might also like: You can now pay rent in Dubai via direct debit instead of cheques