1. What is the Rent Increase Calculation?

The Rent Increase calculation in Dubai follows RERA (Real Estate Regulatory Agency) guidelines which cap rent increases to prevent excessive hikes. The increase is based on the Consumer Price Index (CPI) but cannot exceed the RERA cap percentage.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( CPI \) — Consumer Price Index (inflation rate percentage)
• \( Current Rent \) — Current monthly rent amount in AED
• \( RERA Cap \) — Maximum allowed rent increase percentage (typically 20%)

Explanation: The rent increase is calculated as either the CPI-based increase or the RERA cap, whichever is lower.

3. Importance of Rent Increase Calculation

Details: Proper rent increase calculation ensures compliance with Dubai rental laws, prevents disputes between landlords and tenants, and maintains fair market practices.

4. Using the Calculator

Tips: Enter the current CPI percentage, your current monthly rent in AED, and the applicable RERA cap percentage (default is 20%). The calculator will show the maximum allowed rent increase and your new rent amount.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical RERA cap in Dubai?
A: The standard RERA cap is 20%, but this can vary depending on how much your current rent is below market rates.

Q2: How often can rent be increased in Dubai?
A: Rent can only be increased after the completion of each rental period (usually annually), and proper notice must be given.

Q3: Where can I find the current CPI for Dubai?
A: The Dubai Statistics Center publishes the CPI figures regularly on their official website.

Q4: Can landlords increase rent beyond the RERA cap?
A: No, any increase beyond the RERA cap is considered illegal and can be disputed through the Rental Dispute Settlement Center.

Q5: What if my rent is already below market value?
A: Special provisions may apply if your rent is significantly below market rates. Check the RERA rental index for specific cases.