RERA Rental Index Dubai Explained: How to Calculate a Legal Rent Increase
Navigating a lease renewal in Dubai requires knowing your rights, and the RERA Rental Index is the single most important tool for both tenants and landlords. This official guide ensures that any rent adjustment is legal, fair, and aligned with market value.
This article, backed by the Dubai Land Department (DLD) regulations, explains how to use the calculator, the legal caps on rent increases, and the mandatory steps for compliance.
1. What is the RERA Rental Index?
The RERA Rental Index is an official, publicly available online tool provided by the Real Estate Regulatory Agency (RERA), the regulatory arm of the Dubai Land Department (DLD).
Its primary purpose is to:
- Determine Fair Market Rent: Establish the average rental value for properties based on specific criteria (location, property type, number of bedrooms).
- Regulate Rent Increases: Provide the legal benchmark for calculating the maximum allowable rent increaseupon tenancy contract renewal, preventing arbitrary or unfair hikes.
💡 2025 Smart Index Update: The system now utilizes an AI-driven Smart Rental Index that factors in building-level classifications, maintenance quality, and specific amenities for more accurate, real-time market reflection.
Where to Access the Official Calculator:
You must use the official channels provided by the Dubai government:
- DLD Official Website: Access the dedicated Rental Index Calculator e-service.
- Dubai REST App: The official mobile application of the DLD contains the same tool.
2. The Golden Rule: 90-Day Notice Mandatory 📜
Before any calculation, the foundational legal requirement must be met, as stipulated by Law No. (26) of 2007 (and its amendments) and the subsequent Decree No. (43) of 2013.
- Timing: A landlord can only propose a rent increase upon lease renewal. Rent cannot be increased mid-contract.
- Notice Period: The landlord must provide the tenant with a written notice of any proposed rent adjustment or non-renewal at least 90 days before the contract’s expiry date.
- Consequence of Failure: If the 90-day notice is not given, the tenant has the right to refuse the increase, and the contract renews under the same terms (including the same rent).
3. The Legal Cap Matrix (Decree No. 43 of 2013)
The percentage of the legally permitted rent increase is not a flat rate. It depends entirely on how far your current rent is below the market average determined by the RERA Rental Index.
The maximum allowed increase is strictly defined by Dubai Decree No. (43) of 2013 as follows:
| Current Rent Compared to RERA Index Average | Maximum Allowable Increase |
| Up to 10% below the market average | 0% (No Increase Allowed) |
| 11% to 20% below the market average | Up to 5% |
| 21% to 30% below the market average | Up to 10% |
| 31% to 40% below the market average | Up to 15% |
| More than 40% below the market average | Up to 20% |
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4. Step-by-Step: How to Use the RERA Rent Calculator
Follow these steps to determine the legal rent for your renewal contract with confidence:
Step 1: Gather Required Information
You will need to input the following details into the official DLD/Dubai REST calculator:
- Property Type: Residential (Apartment/Villa), Commercial, or Industrial.
- Area/Community: Select the correct district (e.g., Jumeirah Village Circle, Downtown Dubai).
- Property Details: Number of Bedrooms and property Size (Sq. ft. or Sq. m.).
- Current Contract Details: Your current Annual Rent (AED) and the Contract Expiry Date.
Step 2: Access the Service
Go to the Dubai Land Department (DLD) website and find the “Inquiry about the Rental Index” or “Rental Increase Calculator” service.
Step 3: View the Results
After inputting your details, the calculator will provide two key pieces of information:
- The Average Market Rent: The price benchmark for similar properties in your specific area/building.
- The Maximum Allowable Increase: The exact percentage (0% to 20%) by which your landlord can legally increase the rent, based on the Legal Cap Matrix.
Worked Example
Let’s say you are renting a 2-Bedroom Apartment in Business Bay:
| Detail | Value |
| Current Annual Rent | AED 80,000 |
| RERA Index Market Average | AED 105,000 |
| Difference | AED 25,000 |
| Percentage Below Market | |
| Legal Increase Threshold | 21% to 30% below market |
| Maximum Allowable Increase | 10% |
| New Legal Maximum Rent | AED 80,000 + (10% of AED 80,000) = AED 88,000 |
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In this case, the landlord can legally raise the rent by up to 10% (AED 8,000). Any proposal for a higher increase is unlawful and can be disputed.
5. What if the Landlord Insists on a Higher Rent?
If a landlord attempts to enforce a rent increase that exceeds the RERA calculator’s result, tenants have the right to formally dispute the increase.
- Documentation: Keep a record of the RERA calculator’s result and the landlord’s written notice (or lack thereof).
- Negotiation: Politely inform the landlord that the proposed increase violates Decree No. 43 of 2013 and the RERA Index guidelines, providing the calculated legal maximum.
- Dispute Resolution: If no agreement is reached, the tenant may file a complaint with the Rental Disputes Settlement Centre (RDSC), which operates under the DLD. The RDSC uses the RERA Index as the primary reference point for its judicial decisions.
By understanding the RERA Rental Index, both parties can ensure compliance, promote market transparency, and avoid lengthy disputes over rental pricing.
