How to calculate rental increase in Dubai
Market Trends

How to calculate rental increase in Dubai

Sygma Real Estate

To calculate rental increase in Dubai, individuals can utilize the RERA (Real Estate Regulatory Authority) rental increase calculator. This tool is designed to help both landlords and tenants determine the viability of a rental increase within the permissible guidelines set by Dubai laws.

Here is a structured blog post on how to calculate rental increase in Dubai:

Understanding Rental Increase Calculation in Dubai

In Dubai, the Real Estate Regulatory Agency (RERA) offers a valuable tool known as the RERA rental increase calculator to assist landlords and tenants in evaluating rental increases within legal boundaries.

This calculator considers factors such as property type, contract expiry date, location, and current rent to determine the permissible rental increase.

Steps to Calculate Rental Increase in Dubai Using the RERA Calculator

 

  1. Gather Necessary Information:
    • Property category (residential, commercial, industrial, or staff accommodation)
    • Location or area of the property
    • Ownership status (freehold or not)
    • Type of property (apartment or villa)
    • Total number of bedrooms
    • Date of contract expiration
    • Current annual rent
  2. Access the Calculator:
    • Visit the Dubai Land Department website or log into the Dubai REST app.
    • Proceed to the “Inquiry about the Rental Index” section.
  3. Input Data and Calculate:
    • Fill in the required details accurately.
    • Input your certificate or title deed number and year.
    • Click on the “Calculate” button to generate results.
  4. Review Results:
    • The calculator will display typical rentals in your neighborhood for your selected property type.
    • It helps you understand the actual value of your rented property and whether any rent increase is permissible within legal limits.

Permitted Rent Increase Guidelines in Dubai

As per the Rental Price Index in Dubai, landlords can follow these guidelines for rental increases:

  • No increase if current annual rent is less than 10% below market value.
  • For rentals between 11% and 20% below market value, a 5% increase is allowed.
  • Rentals between 21% and 30% below market value can see a 10% increase.
  • Rentals between 31% and 40% below market value may have a 15% increase.
  • Properties priced more than 40% below market value can incur a 20% rent increase.

By following these steps and guidelines, individuals in Dubai can accurately calculate rental increases using the RERA rental increase calculator, ensuring compliance with legal regulations and fair practices in the real estate sector.

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