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Dubai Rent Increase Formula:
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The Dubai rent increase calculation follows RERA (Real Estate Regulatory Agency) guidelines which cap rent increases at either the CPI (Consumer Price Index) rate or a maximum percentage set by RERA, whichever is lower.
The calculator uses the Dubai rent increase formula:
Where:
Explanation: The calculation ensures landlords cannot increase rent by more than either the CPI rate or the RERA cap, whichever is lower.
Details: Accurate rent increase calculation is crucial for both tenants and landlords in Dubai to ensure compliance with RERA regulations and avoid disputes.
Tips: Enter current CPI percentage, current rent amount in AED, and the applicable RERA cap percentage (default is 20%). All values must be positive numbers.
Q1: Where can I find the current CPI rate for Dubai?
A: The Dubai Statistics Center publishes the CPI rate annually. You can also check RERA's official website for updates.
Q2: How often can rent be increased in Dubai?
A: Rent can only be increased when renewing a contract, not during the contract period, and typically not more than once per year.
Q3: What is the typical RERA cap percentage?
A: The RERA cap varies but is often around 20% for most properties. The exact cap depends on how much your current rent compares to average rents for similar properties.
Q4: Are there exceptions to these rules?
A: Some freehold areas may have different regulations. Always check with RERA for the most current rules applicable to your specific property.
Q5: What if my landlord tries to increase rent beyond the allowed amount?
A: You can file a complaint with RERA's Rental Dispute Center. They will assess whether the increase complies with regulations.