Rental Calculation Formula:
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The Dubai rental calculation uses the RERA (Real Estate Regulatory Agency) index rent multiplied by an adjustment factor to determine the appropriate rent for a property. This helps maintain fair rental prices in Dubai's real estate market.
The calculator uses the rental formula:
Where:
Explanation: The RERA index provides baseline rental values for different areas and property types, while the adjustment factor accounts for property-specific features like views, renovations, or amenities.
Details: Accurate rental calculation ensures compliance with Dubai's rental laws, prevents excessive rent increases, and helps maintain a balanced rental market between landlords and tenants.
Tips: Enter the RERA index rent in AED/month and the appropriate adjustment factor (typically between 0.8 and 1.2). The default adjustment factor is 1.0 for properties matching the standard RERA index specifications.
Q1: Where can I find the RERA index rent?
A: The RERA index is available on the Dubai Land Department website or through the Dubai REST app.
Q2: What factors affect the adjustment factor?
A: Factors include property condition, views, floor level, renovations, amenities, and current market conditions.
Q3: How often is the RERA index updated?
A: The index is typically updated annually, but may be adjusted more frequently in response to market changes.
Q4: Is this calculation mandatory for all rentals?
A: Yes, all rental agreements in Dubai should be based on the RERA index with appropriate adjustments.
Q5: What if my calculated rent differs from market prices?
A: Significant deviations should be justified with proper documentation of property features that warrant the adjustment.