Dubai Rental Index Formula:
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The Dubai Rental Index is a tool used to determine the permissible rent increase for renewal contracts in Dubai. It helps maintain fairness in the rental market by setting limits on how much landlords can increase rents.
The calculator uses the Dubai Rental Index formula:
Where:
Explanation: The formula calculates the new rent by applying the permitted percentage increase to the current rent amount.
Details: Calculating the permitted rent increase helps both landlords and tenants understand their rights and obligations under Dubai's rental laws, preventing disputes and ensuring fair rental practices.
Tips: Enter your current rent in AED and the applicable Dubai Rental Index rate in percentage. The calculator will show the maximum permitted new rent amount.
Q1: How often can landlords increase rent in Dubai?
A: Rent can only be increased at the time of renewal, not during the contract period, and only if the current rent is below market average.
Q2: Where can I find the official Dubai Rental Index rate?
A: The Dubai Land Department publishes the official rental index which can be checked on their website or through the RERA app.
Q3: What if my landlord tries to increase rent beyond the index limit?
A: Tenants can file a complaint with the Rental Dispute Center (RDC) at the Dubai Land Department.
Q4: Are there exceptions to the rental increase cap?
A: The index applies to all residential rental contracts registered in Dubai, with no exceptions.
Q5: How is the rental index rate determined?
A: The rate is based on the property type, location, and how much the current rent differs from the average market rent for similar properties.