Rent Increase Formula:
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The RERA (Real Estate Regulatory Authority) rent increase calculation determines the maximum allowable rent increase in Dubai, based on the Consumer Price Index (CPI) and capped at a percentage set by RERA (typically 20%).
The calculator uses the RERA rent increase formula:
Where:
Explanation: The rent increase is the lower of either the CPI-adjusted increase or the RERA cap percentage.
Details: Proper calculation ensures landlords comply with Dubai rental laws while tenants are protected from excessive rent hikes. The RERA rent calculator provides transparency in the rental market.
Tips: Enter the current CPI percentage, your current rent amount in AED, and the applicable RERA cap (default is 20%). The calculator will show the maximum allowable rent increase and new rent amount.
Q1: Where can I find the current CPI for Dubai?
A: The Dubai Statistics Center publishes the CPI figures regularly on their official website.
Q2: Is the 20% cap always applicable?
A: While 20% is standard, RERA may adjust this cap based on market conditions. Always verify the current cap.
Q3: How often can rent be increased?
A: Typically, rent can only be increased after the completion of the current lease term (usually annually).
Q4: What if my rent is below market average?
A: Special rules may apply for properties significantly below market rates. Check RERA's rental index for specifics.
Q5: Can landlords increase rent beyond the RERA cap?
A: No, any increase beyond the calculated amount or RERA cap is not legally enforceable.