1. What is the Dubai Rental Index?

The Dubai Rental Index, maintained by RERA (Real Estate Regulatory Agency), provides reference rental rates for properties in Dubai. It helps landlords and tenants determine fair market rents and settle rent increase disputes.

2. How Does the Calculator Work?

The calculator uses the rental formula:

Where:

• \( Index\ Rent \) — Base rent as per RERA index (AED/month)
• \( Adjustment\ Factor \) — Multiplier based on property condition, location, and market demand (unitless)

Explanation: The equation accounts for the base rental value from RERA index and adjusts it based on current market conditions and property specifics.

3. Importance of Rental Index Calculation

Details: Accurate rent calculation is crucial for fair rental agreements, legal compliance with Dubai rental laws, and avoiding disputes between landlords and tenants.

4. Using the Calculator

Tips: Enter the base rent from RERA index in AED/month and the appropriate adjustment factor (typically between 0.8 and 1.2 depending on market conditions).

5. Frequently Asked Questions (FAQ)

Q1: Where can I find the RERA rental index?
A: The index is available on the Dubai Land Department (DLD) website or through the RERA Smart App.

Q2: How often is the rental index updated?
A: RERA typically updates the rental index annually, but may adjust it more frequently in volatile market conditions.

Q3: What factors affect the adjustment factor?
A: Property condition, location, amenities, view, and current market demand/supply all influence the adjustment factor.

Q4: Is this calculation legally binding?
A: The RERA index is used by Dubai rental dispute committees, but final rent may be negotiated between parties.

Q5: How much can rent increase annually?
A: Dubai law limits rent increases based on how much current rent differs from the index value (5-20% maximum increase).