In recent years, Dubai's rental market has experienced unprecedented growth, offering a myriad of options for those relocating to the city. With rent emerging as a primary expense, tenants seek economical solutions to navigate this bustling real estate landscape. The key to understanding average rental values lies in the Real Estate Regulatory Agency's (RERA) rent calculator.

The RERA rent calculator, developed by the Dubai Land Department (DLD), plays a pivotal role in determining the estimated rental index for various property types across different areas. If you're entering into an annual lease contract, utilizing the RERA calculator can help you gauge the average rental index for your chosen property.

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What is the RERA Calculator?

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As the regulatory arm of DLD, the Real Estate Regulatory Agency (RERA) administers Dubai's property market, regulating tenancy contracts for a harmonious relationship between landlords and tenants. RERA constantly updates rental prices for residential, commercial, industrial, and staff accommodation properties.

For prospective tenants in Dubai, the RERA rental calculator provides a means to discover the average annual rental index, ensuring that rent payments fall within the suggested range outlined by the RERA rental index of 2023.

Working of the RERA Rental Increase Calculator:

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Understanding the functioning of the RERA rental increase calculator is crucial for tenants. The annual rental index increase is influenced by factors such as property type, location, and the number of rooms. Here's a breakdown of the increase categories:

• No increase if the rent is 10% lower than the market value.
• Up to 5% increase for rent 10 to 20% below the market value.
• Up to 10% increase for rent 20 to 30% below the market value.
• Up to 15% increase for rent 31 to 40% below the market value.
• Up to 20% increase for rent 40% below the market value.

For example, if you're renting a two-bedroom apartment in Dubai Hill Estate and your rent is 40% lower than the market value, your landlord can increase your rent by up to 20%.

How to Use the RERA Rent Calculator:

To use the RERA rent calculator, follow these steps:

• The RERA rent calculator website is an online portal for annual rent estimation
• Dubai Rest App features the rental index calculator

Once you open the RERA rent calculator available on the DLD website or sign in to your Dubai REST mobile application, follow the process below to know the average annual rent according to the market trends:

• Select the tab (Title Deed Number, Ejari Contract Number, residential, commercial, industrial, staff accommodation, or location map).
• If you choose Title Deed Number, you will have to enter the current rent, certificate year and other required information to find out the rental increase.
• Selecting Ejari Contract Number will require only the contract number. The RERA rental index will show the current rent and the amount needed to be increased.
• For instance, you choose Residential tab.

• Now enter your lease contract end date if you live on rent or choose any recent date.
• Select the residential property type (Apartment or Villa).
• Choose the area you are living in or any preferable area.
• Enter the number of bedrooms in your apartment or villa.
• If you already have a rented apartment in Dubai, enter your current annual rent or leave it empty.
• Click on Calculate Rent.

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Once you click on calculate rent, a box will show you the estimated annual rent according to the property market trend. If there is an increase in rental value, it will display a percentage increase depending on the factors mentioned above. You can download these details as a PDF and later compare different areas and property types to choose the most suitable option for yourself.

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In the same way, users can find out the rental value of commercial and industrial units. However, users will have to enter the area square feet instead of bedrooms when finding the rental index of commercial or industrial properties. For shared accommodation, the process is similar to that of residential. 

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Therefore, whether you are negotiating for an apartment or villa for rent in Dubai, RERA recommends both the landlord and tenant to use the RERA rent calculator to avoid future disputes. Besides, tenants and landlords must abide by the RERA tenancy laws for a better relationship.

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