RERA Rental Increase Calculator 2026

What Is RERA?

RERA (Real Estate Regulatory Agency) is the regulatory arm of the Dubai Land Department (DLD), responsible for governing the rental and real estate market in Dubai. Established to protect both landlords and tenants, RERA administers the Smart Rental Index — a tool that determines the maximum legally permissible rent increase upon lease renewal.

RERA's rental increase system is one of the most structured in the GCC, offering clear, transparent rules that prevent arbitrary rent hikes. Understanding how it works is critical for anyone renting in Dubai — whether you're a tenant checking if your landlord's proposed increase is legal, or a landlord determining the maximum you can charge.

Decree No. 43 of 2013 — The Rental Increase Framework

Decree No. 43 of 2013, issued by the Ruler of Dubai, establishes the tiered system for allowable rent increases. The system compares your current rent to the average market rent for similar properties in the same area. The larger the gap, the higher the permitted increase — up to a maximum of 20%.

Current Rent vs Average Market Rent	Maximum Increase	Example (AED 60,000 rent)
Up to 10% below average	0% (No increase)	Rent stays AED 60,000
11–20% below average	Up to 5%	Max AED 63,000 (+3,000)
21–30% below average	Up to 10%	Max AED 66,000 (+6,000)
31–40% below average	Up to 15%	Max AED 69,000 (+9,000)
More than 40% below	Up to 20%	Max AED 72,000 (+12,000)

Smart Rental Index 2025

On January 1, 2025, Dubai upgraded its rental index to the Smart Rental Index — an AI-driven system that provides more accurate, property-specific valuations. Key improvements:

• AI analytics — Uses machine learning and real-time transaction data
• Building-level precision — Considers building quality, age, facilities, and demand
• Frequent updates — More regular data refreshes vs the old annual updates
• Location granularity — Distinguishes between micro-areas within communities
• Amenity weighting — Factors like pool, gym, parking, and metro proximity

You can access the Smart Rental Index at dubailand.gov.ae or via the Dubai REST app (available on iOS and Android). Enter your property type, area, bedrooms, and current rent to see the average market value and whether an increase is permitted.

Worked Examples

Example 1: No Increase (Within 10%)

Item	Value
Current annual rent	AED 72,000
RERA average market rent	AED 78,000
Difference	AED 6,000 (7.7% below average)
Applicable tier	0–10% below → No increase
New rent	AED 72,000 (unchanged)

Example 2: 5% Increase (15% Below)

Item	Value
Current annual rent	AED 55,000
RERA average market rent	AED 65,000
Difference	AED 10,000 (15.4% below average)
Applicable tier	11–20% below → Up to 5%
Max increase	AED 55,000 × 5% = AED 2,750
New rent	AED 57,750 maximum

Example 3: 20% Increase (50% Below)

Item	Value
Current annual rent	AED 40,000
RERA average market rent	AED 80,000
Difference	AED 40,000 (50% below average)
Applicable tier	>40% below → Up to 20%
Max increase	AED 40,000 × 20% = AED 8,000
New rent	AED 48,000 maximum

Dubai vs Abu Dhabi — Rental Increase Rules

Aspect	Dubai	Abu Dhabi
System	Tiered (0–20%)	Flat 5% cap
Legal basis	Decree No. 43/2013	DMT regulations
Index tool	Smart Rental Index	ADREC Rental Index
Notice period	90 days	60 days
Contract system	Ejari	Tawtheeq
Disputes	RDC (rdc.gov.ae)	AD Rental Disputes Centre
Governing law	Law No. 26/2007	Law No. 20/2006

Ejari System — Registration, Renewal & Cancellation

Ejari (which means "my rent" in Arabic) is Dubai's mandatory tenancy contract registration system. Every rental contract must be registered in Ejari for it to be legally enforceable.

Why Ejari Is Mandatory

• DEWA activation — Cannot connect electricity and water without Ejari
• Visa processing — Required for residence visa applications
• School enrollment — Schools require proof of residence via Ejari
• Banking — Some banks require Ejari for account opening
• Dispute resolution — RDC only accepts cases with valid Ejari

Ejari Fees

Fee	Online (Dubai REST)	Trustee Centre
Registration fee	AED 100	AED 100
Knowledge fee	AED 10	AED 10
Innovation fee	AED 10	AED 10
Service partner	AED 55	AED 130 + VAT
Total	AED 175–220	AED 270–320

Documents Required

• Signed Unified Tenancy Contract (RERA standard form)
• Tenant's Emirates ID (both sides, valid)
• Tenant's passport copy with valid UAE visa page
• Security deposit receipt (if applicable)
• DEWA premise number or latest DEWA bill
• Landlord's Emirates ID/passport and title deed

Tenant Rights — Law No. 26 of 2007

Law No. 26 of 2007 (as amended by Law No. 33 of 2008) governs all landlord-tenant relationships in Dubai. Key tenant protections:

• No mid-contract rent increase — Rent can only be increased at renewal
• 90-day notice requirement — No notice = no increase
• RERA cap applies — Landlord cannot exceed the tier-based maximum
• Auto-renewal — If tenant stays after contract end without objection, lease renews at same terms (for the shorter of the original period or 1 year)
• Deposit refund — Landlord must return security deposit at lease end, minus legitimate deductions
• Maintenance obligation — Landlord is generally responsible for structural maintenance
• No eviction for non-payment without 30-day notice — Written warning required first

Landlord Rights and Eviction Grounds

Eviction During Active Lease

• Non-payment of rent — After 30-day written notice to pay
• Unauthorized subletting — Without landlord's written consent
• Illegal use — Using property for illegal or immoral activities
• Property damage — Endangering safety or making unauthorized modifications
• Commercial vacancy — Leaving commercial property empty for 30+ consecutive or 90+ non-consecutive days

Eviction at Lease Expiry (12-Month Notice Required)

• Personal use — Landlord or first-degree relative needs the property. Must not own a suitable alternative.
• Sale of property — Owner wishes to sell the leased property
• Demolition/reconstruction — With Dubai Municipality approval and construction permits
• Major renovation — That cannot be performed while occupied, verified by a technical report

Rental Disputes Centre (RDC)

The Rental Disputes Centre (RDC), established in 2013 under the DLD, handles all rental disagreements in Dubai.

Aspect	Detail
Filing location	RDC office, trustee centres, or online (rdc.gov.ae / Dubai REST)
Filing fee	3.5% of annual rent (min AED 500, max AED 20,000)
Additional fees	Process service AED 100 + Knowledge AED 10 + Innovation AED 10
Amicable settlement	Available before litigation — conciliator appointed
Verdict timeline	Typically within 30 days
Appeal	Within 15 days; deposit = 50% of awarded amount
Appeal threshold	AED 50,000 (general) / AED 100,000 (financial-only) / no limit for eviction

DEWA Connection After Ejari

DEWA services are automatically linked when Ejari is registered. Costs:

Fee	Apartment	Villa
Security deposit (refundable)	AED 2,000	AED 4,000
Connection fee	AED 130	AED 130
Knowledge & innovation	AED 20	AED 20
VAT (5%)	~AED 108	~AED 208
Total	~AED 2,258	~AED 4,358

The 5% Housing Fee (Dubai Municipality) is also added to your monthly DEWA bill: 5% of annual rent ÷ 12. For a rent of AED 60,000, this is AED 250/month.

Common Mistakes When Dealing With Rent Increases

1. Not checking the RERA index — Many tenants accept increases without verifying if they're within the legal cap
2. Ignoring the notice period — If your landlord didn't give 90 days' notice (Dubai) or 60 days (Abu Dhabi), the increase is unenforceable
3. Using the wrong area average — Make sure you check the average for your exact community, not the broader area
4. Confusing Dubai and Abu Dhabi rules — Dubai uses tiers, Abu Dhabi has a flat 5% cap
5. Not registering Ejari — Without valid Ejari, you cannot file a dispute at the RDC
6. Accepting verbal notice — Notice must be in writing (notary public or registered mail)
7. Forgetting about the housing fee — The 5% municipality fee is separate from rent and isn't covered by the RERA cap
8. Assuming the landlord can charge the RERA average — The cap applies to the increase %, not setting rent to the average itself

Tips for Tenants and Landlords

For Tenants

• Check the RERA index before renewal — Know your rights before your landlord contacts you
• Document everything — Save all correspondence, notices, and receipts
• Register Ejari immediately — Don't delay, as it affects DEWA and dispute rights
• Negotiate — Even if an increase is legal, you can often negotiate a lower amount
• Know your eviction protections — Landlords need valid legal grounds and proper notice

For Landlords

• Serve notice on time — 90 days before lease end in Dubai, 60 days in Abu Dhabi
• Use written notice — Via notary public or registered mail for legal enforceability
• Stay within RERA caps — Exceeding the maximum can result in disputes and legal costs
• Maintain the property — Good maintenance retains tenants and justifies market-rate rents
• Keep Ejari current — Expired or missing Ejari weakens your position in disputes