RERA Rent Increase Formula:
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The RERA (Real Estate Regulatory Agency) rent increase calculation determines the maximum allowable rent increase in Dubai, considering both the Consumer Price Index (CPI) inflation rate and the RERA cap (typically 20%).
The calculator uses the RERA rent increase formula:
Where:
Explanation: The rent increase is the lower value between the CPI-adjusted increase and the RERA cap limit.
Details: The RERA cap protects tenants from excessive rent increases while allowing landlords to adjust rents according to market conditions. It ensures fair and regulated rental market practices in Dubai.
Tips: Enter current rent in AED, CPI percentage (available from Dubai Statistics Center), and the applicable RERA cap percentage (default is 20%). All values must be positive numbers.
Q1: Where can I find the current CPI for Dubai?
A: The CPI is published quarterly by the Dubai Statistics Center and is available on their official website.
Q2: Is the RERA cap always 20%?
A: While 20% is common, the actual cap may vary based on how much your current rent is below the market average. Check the RERA Rental Index for specific cases.
Q3: How often can rent be increased?
A: In Dubai, rent can typically be increased only once every 12 months, subject to the RERA guidelines.
Q4: What if my landlord tries to increase rent beyond the RERA cap?
A: You can dispute the increase through the RERA rental dispute center. Always get any rent increase notice in writing.
Q5: Does this calculator apply to all types of properties?
A: This applies to residential and commercial properties in Dubai, but special rules may apply to certain free zones or newly developed areas.