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RERA Rental Calculator & Dubai’s New Smart Rental Index: The 2025 Guide
Dubai’s rental laws are clear: rent increases must comply with official guidelines, and the RERA (Real Estate Regulatory Agency) calculator, now enhanced as the 2025 Smart Rental Index, enables tenants and landlords to accurately determine whether a rent increase is permitted, and by how much.
Whether you’re renting an apartment in JVC or leasing a warehouse in Al Quoz, this tool ensures fairness and transparency in every lease renewal【Dubai Land Department, 2025】.
Table of Contents
- What is RERA?
- New Rental Laws in Dubai (2025 updates)
- Does the RERA Index Calculator Apply to All Property Types?
- For Residential Properties
- For Commercial Properties
- For Industrial Properties
- How Often is the RERA Rental Index Updated?
- Is it Legal to Increase Rent in Dubai?
- How Much Can My Rent Increase by According to RERA?
- How to Negotiate Rent Price in Dubai
- Can Landlords Use the RERA Calculator for New Leases?
- Can the RERA Calculator Help Me Estimate Future Rent Adjustments?
- What’s New in the 2025 Rental Calculator?
- Conclusion
What is RERA?
The Real Estate Regulatory Agency (RERA) is part of the Dubai Land Department (DLD) and oversees all property transactions in the emirate. It licenses brokers, regulates rental agreements, manages dispute resolution, and, most importantly for tenants and landlords, sets the official Rental Price Index that determines allowable rent increases【DLD, 2025】.
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New Rental Laws in Dubai (2025 Updates)
Dubai’s rental rules are based on Decree No. 43 of 2013 and the tenancy laws in Law No. 26 of 2007 and Law No. 33 of 2008. The main updates in 2025 include:
- Smart Rental Index replacing the old calculator (effective since Jan 1, 2025).
- Real-time price updates using AI and building classification for fairer valuations.
- Mandatory 90-day written notice for any rent increase before lease renewal (unchanged from earlier law).
- The same rent increase caps still apply, but valuations are now more accurate and updated faster.
Does the RERA Index Calculator Apply to All Property Types?
Yes. The RERA Index, and its calculator, covers all major types of property rentals categories in Dubai, with benchmarks tailored to each type:
Residential Properties
For residential properties, RERA covers apartments, villas, townhouses and staff accommodations. Uses area, property type and number of bedrooms to compare with market averages.
Commercial Properties
For commercial properties, RERA applies to offices, shops, malls and other business premises. Classification may depend on location, building facilities and business zoning.
Industrial Properties
For industrial properties, RERA Includes warehouses, factories, and industrial plots. Rental increases are still subject to the index, but based on industrial-specific benchmarks.
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How Often is the RERA Rental Index Updated?
Before 2025, the index was updated annually.
With the Smart Rental Index, updates happen in real-time as the system pulls in market data from transactions, listings and building classifications.
Is it Legal to Increase Rent in Dubai?
Yes, but only if:
- The increase is allowed under the RERA index rules.
- You receive a 90-day notice before your lease renewal date.
- The rent increase falls within the legal percentage caps (see below).
If a landlord raises rent outside these rules, tenants can file a case with the Rental Dispute Settlement Centre【Dubai Tenancy Law, 2008 & 2013】.
How Much Can My Rent Increase by According to RERA?
Under Decree No. 43 of 2013:
| Difference from Market Rent (per Index) | Max Allowed Increase |
|---|---|
| Up to 10% below market | 0% |
| 11–20% below market | 5% |
| 21–30% below market | 10% |
| 31–40% below market | 15% |
| More than 40% below market | 20% |
Example:
If the average rent for a 2BR in your area is AED 80,000 and you’re paying AED 60,000 (25% less), your landlord can raise rent by up to 10%, or AED 6,000.
How to Negotiate Rent Price in Dubai
- Check the Dubai RERA Rental Calculator before negotiations.
- Gather comparable listings in your area.
- Mention building age, maintenance quality, or lack of facilities if they justify keeping rent stable.
- Document all communications in writing.
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Can Landlords Use the RERA Calculator for New Leases?
Absolutely, and in many cases, they should. While Dubai’s rental caps under the RERA framework primarily govern renewal contracts, the Smart Rental Index is just as valuable when setting a starting rent for a brand-new lease.
For landlords, using the index at the outset ensures that the advertised rent is competitive, realistic and backed by official market data. This can make a property more appealing to potential tenants, reduce negotiation time and help avoid pricing it too high, risking long vacancy periods, or too low and by that leaving money on the table.
Can the RERA Calculator Help Me Estimate Future Rent Adjustments?
Yes, but keep in mind:
- The Smart Rental Index updates continuously, so future estimates may change.
- Use it as a guide, not a guaranteed future figure.
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What’s New in the 2025 Rental Calculator?
Smart Features:
- AI-driven real-time updates for more accurate market reflections.
- Building classification (maintenance, facilities, parking, etc.) to value properties more precisely.
- More transparency: tenants and landlords see the same live data.
Impact:
- Fewer disputes over rent values.
- More predictable and fair rental adjustments.
- Greater confidence for both sides when signing or renewing leases.
Conclusion
Dubai’s Smart Rental Index and RERA rental laws protect both landlords and tenants by ensuring rent increases are legal, transparent and market-driven. Whether you’re renewing your lease or setting a new rental rate, the RERA calculator is your go-to tool for fairness in Dubai’s fast-moving property market.
Pro tip: Always check the index at least 90 days before renewal, and remember knowledge is your best negotiating power.