Dubai’s rental market has grown exponentially over the last few years. Thanks to the property developments and new project initiations, a wide array of rental options are available for people moving to Dubai. Therefore, people want an economical option as rent becomes a primary expense for the tenants. This makes one wonder how people will find the average rental values of different properties and the area they are located in. This is where the RERA rent calculator comes into play.
The rental calculator by Dubai Land Department (DLD) helps find out the estimated rental index for different types of properties area-wise. If you are getting into an annual lease contract, here’s how to use the RERA calculator to determine the average rental index.
WHAT IS RERA CALCULATOR?
Real Estate Regulatory Agency (RERA), the regulatory arm of DLD drafts laws to administer the property market in Dubai. Besides, RERA regulates tenancy contracts to build a mutually beneficial relationship between the landlord and tenant.
The authority also updates rental prices for different property types such as residential, commercial, industrial, or staff accommodation.
Therefore, if you want to rent a property in Dubai, you can find the average annual rental index from the RERA rental calculator. The calculator will ensure that you pay the rental amount within the range suggested by the RERA rental index 2023.
However, before we learn to use the rent calculator, let’s go through the working of a RERA increase rent calculator in Dubai.
WORKING OF RERA RENTAL INCREASE CALCULATOR
The increase in the annual rental index depends on several factors, such as property type, location, number of rooms and other parameters. However, the increase is divided into the following categories:
- There is no increase in rent if the rent is 10% lower than the estimated market value
- If the rent is 10 to 20 percent lower than the market value, the maximum increase can be up to 5%
- The maximum increase may be up to 10% if the rent is 20 to 30 percent less than the market value in the area
- Up to a 15% increase in rent if the rental value is 31 to 40% lower than the market value
- If the rent is 40% less than the market value, the rent increase may be up to 20%
Case in point: If you want to rent a two-bedroom apartment in Dubai Hill Estate, the average rent value in 2023 is between AED 86,000 and AED 106,000 annually. However, if you are already living on rent in a two-bedroom apartment in Dubai Hill Estate and your rent is 40 percent lower than the market value (AED 51,600 to 63,600), your landlord can increase your rent by up to 20%.
Additionally, you can add the current annual rent value in the RERA rental index calculator and the contract end date. After entering the required information, it will give you the amount that needs to be increased in the annual rent when you renew the tenancy contract.
Case in point: If the rent is AED 60,000 for a two-bedroom apartment in Dubai Hill Estate under the current tenancy contract, the landlord can increase AED 9,000. That said, the annual rental values don’t include electricity and water bills or any other fees, such as Dubai Municipality Housing fees.
The RERA rent calculator makes these complex calculations easy. Let’s learn how to use the RERA rent increase calculator.
HOW TO USE RERA RENT CALCULATOR
You can use the rental index calculator from the following options provided by DLD:
- 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.
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.
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.
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.
Stay tuned to the UAE’s leading real estate blog to learn more about different governing bodies and smart applications relating to the property market in the Emirates.
Related Posts
