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Rera Rental Increase Calculator Dubai Government

RERA Rent Increase Formula:

\[ \text{Rent Increase} = \min(\text{CPI} \times \text{Current Rent}, \text{RERA Cap} \times \text{Current Rent}) \]

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1. What is RERA Rent Increase Calculation?

The RERA (Real Estate Regulatory Agency) rent increase calculation determines the maximum allowable rent increase in Dubai, based on either the Consumer Price Index (CPI) or the RERA cap, whichever is lower.

2. How Does the Calculator Work?

The calculator uses the RERA formula:

\[ \text{Rent Increase} = \min(\text{CPI} \times \text{Current Rent}, \text{RERA Cap} \times \text{Current Rent}) \]

Where:

Explanation: The calculation ensures landlords cannot increase rent beyond either the inflation rate or the government-mandated cap.

3. Importance of RERA Guidelines

Details: RERA rent increase regulations protect tenants from excessive rent hikes while allowing landlords reasonable adjustments based on inflation and market conditions.

4. Using the Calculator

Tips: Enter the current CPI percentage (available from Dubai Statistics Center), your current monthly rent in AED, and the applicable RERA cap (default is 20%).

5. Frequently Asked Questions (FAQ)

Q1: Where can I find the current CPI for Dubai?
A: The Dubai Statistics Center publishes CPI data quarterly on their official website.

Q2: Is the RERA cap always 20%?
A: While 20% is common, the cap may vary based on property type and how far below market value the current rent is.

Q3: How often can rent be increased?
A: Typically once per year, at the time of lease renewal, following RERA guidelines.

Q4: Are there exceptions to these rules?
A: Some freehold areas may have different regulations, and new leases are exempt from these increase limits.

Q5: What if my landlord tries to increase rent beyond this?
A: You can dispute the increase through the RERA rental dispute center.

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