1. What is the Dubai Smart Rental Index?

The Dubai Smart Rental Index is a system used to calculate permissible rent increases in Dubai. It provides a fair and transparent method for determining annual rent adjustments based on market conditions.

2. How Does the Calculator Work?

The calculator uses the Dubai Smart Rental Index formula:

Where:

• Current Rent — The existing annual rent amount in AED
• Dubai Smart Index Rate — The percentage increase allowed by the index

Explanation: The formula calculates the new maximum rent that can be charged based on the current rent and the permitted increase percentage set by the Dubai Land Department.

3. Importance of Rent Calculation

Details: Accurate rent calculation is crucial for both landlords and tenants to ensure compliance with Dubai's rental laws and to maintain fair rental market practices.

4. Using the Calculator

Tips: Enter current rent in AED and the Dubai Smart Index Rate as a percentage (e.g., 5 for 5%). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How often can rent be increased in Dubai?
A: Rent can typically be increased only once per year, and only if the current rent is below market average.

Q2: Where can I find the current Dubai Smart Index Rate?
A: The rate is published annually by the Dubai Land Department and can be checked on their official website or at their offices.

Q3: Are there exceptions to the rent increase cap?
A: Yes, newly constructed properties or properties with significant renovations may be exempt for a certain period.

Q4: What if my rent is already above market average?
A: If your rent is already above the market average according to the RERA index, no increase is permitted.

Q5: How is the index rate determined?
A: The rate is based on comprehensive market studies comparing similar properties in the same area.