Dubai rental calculator

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How does RERA rental increase index calculator work in Dubai 2023?

RERA (Real Estate Regulatory Authority), a separation of the Dubai Land Department, offers a Dubai rental calculator to assist property owners and occupants in determining if a future rental INDEX increase is permissible.

In this article, we will be talking about RERA calculator. The new RERA Dubai Calculator Index has lately been released, and many Dubai citizens are speculating if they should expect payment hikes or cutbacks from their landowners this year. Here is a quick explanation for individuals who do not understand how the Rera Calculator Dubai works.

1. Discover how to check the Dubai rental calculator?

The first step is to visit the RERA Dubai calculator website and navigate to the Dubai Rental calculator information page. Then, fill up the blanks with the essential information in the RERA rent calculator online.

  • Regardless of whether the facility is residential, commercial, industrial, or staff housing.
  • The expiration date of the tenancy contract.
  • The main part of the property (Deira, Bur Dubai which refers to elsewhere in Dubai or whether it is a freehold property).
  • Type of property (apartment or villa).
  • Area (community or sub-community).
  • Count of bedrooms.
  • Annual rental Index amount as of now.

Finally, examine the RERA team’s remarks on the region.

RERA (Real Estate Regulatory Authority) as a unit of Dubai Land Department, provides a rental Index calculator that helps landlords and tenants decide whether or not a proposed tenancy growth is possible.

2. What is the RERA rent growth calculator for 2022-2023?

In the last month of 2013, in a move to avoid market-setting costs, His Highness Sheikh Mohammed bin Rashid Al Maktoum, the Ruler of Dubai, issued Decree No. 43 of 2013 to specify rent increases and stop illegal rent increases. We will discuss here everything about the rental increase law in Dubai.

The Dubai rent calculator is based on the RERA rental index which is updated annually and the rental suggestions in the index are valid for each of the rental characteristics in Dubai throughout the year.

RERA’s rent increase calculator enables landlords and tenants to enter details of their property and receive results to show whether or not a property rental increase is applicable. Landlords are encouraged to refer to the Tenancy Dubai rental Calculator once they factor in a Dubai rent increase to ensure they continue to do a job within the parameters of the law, and tenants are encouraged to refer to the Dubai rent calculator in the event of a rent increase in Dubai.

The RERA Dubai calculator asks for the following:

  • Whether the property is residential, commercial, industrial or staff accommodation.
  • Lease expiration date.
  • Primary area of ​​the property (Deira, Bur Dubai, which is related to any other part of Dubai or if we are talking about a freehold property).
  • Property type (apartment or villa).
  • Area (community or sub-community).
  • A number of rooms.
  • Today’s annual leasing cost.

However, there are certain relevant points that the RERA Dubai calculator does not have in mind:

  • Age of building/unit.
  • State of the property.
  • Accessible facilities.
  • Soil grade.

The Dubai rent calculator works by comparing the cost of your property to the average costs of similar properties in your area.

3. What is the maximum permissible rent increase according to RERA?

Since January 2016, the RERA rent index follows a graduated structural approach:

  • If the current annual rent is less than 10% of the calculated market cost, no increase is applied.
  • In case today’s annual rent is between 11% and 20% below the calculated RERA market cost, the highest applicable rent growth is 5%.
  • If the current annual rent is 21% to 30% below the calculated RERA market cost, the largest applicable rent increase is 10%.
  • In case the property’s annual rent is 31% to 40% below the calculated RERA market cost, the highest applicable rent growth is 15%.
  • If the property’s annual rent is more than 40% below the RERA calculated market cost, the highest applicable rent increase is 20%.

4. When is a rent increase possible?

If your property is eligible for lease growth, only then, your landlord must give you a notarized written notice 90 days prior to your lease renewal. You can deliver it personally, drop it off at your door, or send it by certified mail.

If the landlord does not give you a notarized written notice within the designated 90 days by any of the means specified above, you are not required to agree to the rent increase.

RERA rent increase law: what do I do?

Unfortunately, despite the law and the existence of the lease growth RERA index calculator, some landlords will attempt to increase the rent once they are unable to, or will increase the rent beyond what is authorized by law.

In the situation where the rental calculator indicates that a rent increase is unreasonable or simply not authorized, yet the landlord insists on increasing the rent, the tenant should try to talk to the landlord and use the rent Dubai RERA calculator as proof of back.

If the discussions are not fruitful, then the tenant has every right to raise a dispute about the rent increase with the Tenancy Dispute Resolution Center, where the matter will be dealt with in a manner.

5. Why are Europeans investing in Dubai and seeing it as an investment Destination?

The Dubai real estate market is quite fascinating for a few reasons. Here are several justifications why Dubai is currently the best location for investors:

5.1 Residence visa

The first and foremost reason to buy a property in Dubai is to obtain a residence visa. However, you would need to market a property costing AED 1 million in Dubai to be eligible for the work visa. In addition, you should confirm that the property you are buying is not off-plan or under a mortgage.

The Dubai Economic Department will need a replica of your passport and previous land title to produce a business license after obtaining acceptance from the Dubai Land Department. After that, you can go to the immigration office to get a 2-year residence visa.

You can also get a 5-year renewable multiple entry visa if you invest in a property costing well over AED 5 million. However, visas can only be renewed as long as you continue to own the property.

5.2 No annual property taxes

Another key component that sets Dubai apart in the eyes of investors from Europe and beyond is the lack of a property tax. With its exemption from annual property taxes, income taxes, and capital income taxes in Dubai, foreign investors investing in Dubai need not worry about paying taxes, making it a long-term investment.

This would be because investors only have to pay one-time property transaction fees and registration fees once they purchase a property. Furthermore, due to the fact that investors have the possibility to rent apartments or real estate and pocket their earnings tax-free without worrying about extra fees, Dubai becomes an ideal investment space.

5.3 Good weather

Dubai has fantastic sights and lovely sunny weather. You can enjoy the sun all year round. Winter and summer are both diverse seasons in Dubai. Winter begins in October and summer in May. Experience warm, sunny, and clear skies year-round.

5.4 Livability: A fundamental marketing point

With an unrivaled standard of living in Dubai compared to huge European cities like London or Paris, Dubai is widely regarded as one of the top cosmopolitan places to invest. It, therefore, makes sense that investors from Europe are buying real estate in Dubai, given its first-rate

Furthermore, ex-pats from Europe love to live in Dubai for its peace of mind, security, and stability. They also invest in its highly regulated and open real estate market. Furthermore, the fact that investors’ interests are well safeguarded gives investors from Europe a gigantic peace of mind that their investment in Dubai is safe.

5.5 High degree of life

Dubai is on every affluent metropolis list around the world. However, it is primarily famous for having a luxurious lifestyle: one of the best in the world! However, Dubai is not only successful because of its glamorous lifestyle, it is also the ideal destination where everything you could want redefines luxury. For this reason, investors invest in this city of luxury and hope.

5.6 Stability and defense

Owing to its safe and secure environment, Dubai stands out not only as one of the premier residential destinations but also as an excellent place for raising a family. Additionally, the incidence of violent crime is scarce, contributing to an exceptionally low overall crime rate.

As one of the safest nations, Dubai is a great place to invest, as other territories have been trying to minimize their rising crime rates. They use the most present technology to stop criminals and carry out precise and severe laws against crime. As a consequence, robberies are almost non-existent and minor fights on the side of the road have a peaceful ending.

5.7 Innovation and Advanced Technology

Today, every investor is looking for the possibility of living in an up-to-date and intelligent city. In Dubai, you can find all of the above with the greatest of ease. You can take advantage of a sequence of services there, which integrate a ready-made infrastructure, state-of-the-art facilities, and interesting entertainment possibilities.

Since Dubai offers some of the best amenities in the world, many people choose to invest in real estate there. If you also want to purchase luxury properties in Dubai, continually choose a reputable real estate organization like Unique Zone.

5.8 High Return On Investment (ROI)

Dubai has a thriving real estate market as its population grows. As a result, if you pay a substantial amount of money in rent each year, it is a recommendation that you instead explore purchasing your own house. If you plan to sell it in the future, it will provide a significant return on investment.

Furthermore, Dubai rental index returns in Dubai are frequently above 6% on average. Which is greater than in major global markets like as London, New York, or Hong Kong. As a result, you should consider renting out your property to create money.

Take advantage of the UAE’s ever-expanding economy, which is brimming with chances for people of all backgrounds, ages, and genders. Allow yourself to begin a new chapter and open the door to earning a larger income in less time.

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