How Rent Increases Are Calculated Under RERA Index (2025 Update | betterhomes

Ever felt a little uneasy when you open your lease renewal notice? You are not the only one. Rent increases in Dubai and other emirates can be confusing, and many tenants wonder whether the amount their landlord requests is fair. The good news is that the Real Estate Regulatory Agency (RERA) has clear rules in place to protect tenants while ensuring landlords can keep rents aligned with the market.

Since 2025, RERA has adopted updated data from Ejari-registered contracts to ensure more precise rent adjustments. The system compares your current rent with the average rent in your area to determine if an increase is allowed. In this guide, we will explain how the 2025 RERA rent index works, the rent increase percentage limits, tools you can use to check your rent, your rights as a tenant, and the steps to take if an increase seems unfair.

What Is the RERA Rental Index?

The RERA Rental Index is a guide that helps you understand what a fair rent is in your area. It shows the average rent for different property types across Dubai, based on real data from existing tenancy contracts. The index is updated often, so it reflects the latest market conditions. When your rent is compared against the index, it shows whether what you are paying is close to the market average or much lower. In simple terms, it is RERA’s way of ensuring you are not overcharged and that rent increases remain within fair and legal limits.

How Are Rent Increases Calculated?

Under the RERA rent increase rules, the amount your landlord can raise your rent depends on how far your current rent is from the average market rate in your area. The Dubai Land Department sets these limits using data collected from Ejari-registered contracts, ensuring the information reflects real market prices rather than random estimates.

The goal is to make sure rent adjustments are fair for both tenants and landlords. Let’s look at how these limits work in practice.

When No Increase Is Allowed

If your current rent is at least 10% below the average market rent, your landlord cannot increase your rent. The rule applies even when your contract is up for renewal and protects you from unnecessary increases when your rent is already close to the area’s standard rate.

When a Small Increase Is Allowed

If your rent is between 11 and 20% lower than the average rent in your area, your landlord can raise it by up to 5%. It helps narrow the gap between old contracts and current market rents without creating a large rent increase.

When the Rent Is Much Lower

If your rent is 21 to 30% below the average rate, your landlord can increase it by up to 10%. Such cases often apply to older contracts where rent has not been updated for several years.

When the Rent Is Significantly Lower

If your rent is 31% to 40% lower than the average for similar properties in your area, the landlord can increase it by up to 15%. The goal is to bring older contracts closer to current market rates while staying within the established limits for rent increases.

When the Rent Is Far Below the Market Rate

If your rent is more than 40% below the average rent, your landlord can increase it by up to 20%. It is the highest limit under the law, but even then, the new rent must remain reasonable compared to the area’s average.

The Law Behind These Rules

All these limits are set out in , which defines how rent increases are calculated and ensures landlords follow a consistent standard across Dubai.

The RERA Rent Calculator uses the same legal limits to check if a proposed increase is valid. When you enter your rent details, the calculator compares your current rent with official data and shows whether your landlord can raise it.

Example

Suppose you rent a two-bedroom apartment in Al Nahda, Dubai, where the average rent for similar apartments is around AED 60,000 per year. If you're paying AED 45,000, your rent is about 25% lower than the market average. Under RERA’s rent increase rules, when rent is between 21% and 30% below the average, the landlord can increase it by up to 10%. As a result, your new rent could be raised to AED 49,500 for the next contract period. Even with this increase, the landlord cannot charge more than the area’s average rent of AED 60,000.

Tools to Check Your Rent Increase

To find out if your rent increase is within the legal limits, you can use the RERA Rent Calculator. Here’s how you can use it:

Step 1: Open the RERA Rent Calculator

Start by visiting the official website of the Dubai Land Department or opening the Dubai REST app on your phone. Both platforms have the RERA Rent Calculator, which is free and easy to use.

Step 2: Enter Your Details

Fill in the basic information about your property. You will need to select your area, property type, number of bedrooms, and the date your lease is set to renew. Then, enter your current annual rent exactly as it appears in your Ejari contract.

Step 3: Review the Market Average

Once you submit the details, the calculator will show the current average market rent for similar properties in your area. It compares your rent with this data to see how far above or below the market rate your current amount is.

Step 4: Check If an Increase Is Allowed

The calculator then tells you whether your landlord can increase the rent and, if so, by how much. The result is based on RERA’s official rent increase brackets, which means the figure you see is legally valid.

Using the calculator tool only takes a few minutes and provides a clear overview of your rent's position. It allows you to verify if your landlord’s proposed increase is fair and in line with Dubai’s rent control rules before agreeing to any changes.

Your Rights as a Tenant

As a tenant, it's essential to be aware of your rights under Decree No. 43 of 2013, which protects you from unfair rent increases. These rights ensure that any rent adjustments are in line with market standards and are legally justified. Here's a breakdown of the key rights tenants have under this decree:

Right to Fair Rent Increases

Tenants have the right to fair and regulated rent increases. The decree limits the percentage by which a landlord can increase rent based on how far below the average market rental rate the tenant's current rent is. The rent increase is calculated using a clear formula, with a maximum increase of up to 20%, based on how much lower the tenant's current rent is compared to the market rate.

Right to No Increase Under Specific Conditions

Renters paying 10% or less below the average market rate will not face a rent increase upon lease renewal. It ensures protection when the rent is already close to the market average.

Right to Challenge Unfair Rent Increases

Tenants have the right to dispute a rent increase if it exceeds the legal limits set in the decree. Tenants can use the RERA Rent Index to verify whether the proposed increase is within the legal limits.

Right to Be Informed of Rent Increases

Landlords must provide written notice to tenants at least 90 days before a rent increase takes effect. Tenants then have ample time to assess the increase and take any necessary action.

Right to Use Official Tools for Rent Verification

Tenants can use the Rent Calculator to compare their current rent with the average market rent for similar properties in their area. The tool helps tenants determine whether the proposed rent increase is legally valid.

Right to Legal Protection

If tenants believe a proposed rent increase violates the decree, they can file a complaint with the Rent Disputes Settlement Centre. The centre will mediate the dispute and ensure that the increase complies with the legal limits set out in the decree.

Knowing these rules gives you confidence and ensures that you pay a fair rent.

What to Do If Your Landlord Tries to Raise Rent Illegally

If your landlord demands a rent increase that doesn’t follow RERA’s rules, don’t panic. The law is on your side. First, check the details using the RERA Rent Calculator to confirm whether the increase is within the legal range. If the numbers don’t match, reach out to your landlord in writing and share the calculator result as proof. Sometimes, a simple clarification is enough to resolve the issue.

If your landlord still insists on an unlawful increase, you can file a complaint with the Rent Disputes Settlement Centre (RDSC) in Dubai. The process is straightforward and handled online through the Dubai Land Department’s website or in person at the RDSC office. Keep all your documents ready, including your Ejari certificate, tenancy contract, payment receipts, and any written communication with the landlord. The centre will review your case, verify the facts, and issue a binding decision.

Taking these steps ensures your rights are protected and that your rent remains within the legal limits set by RERA.

Conclusion

Knowing how rent increases are calculated under the RERA Index helps you make clear decisions about your home. The process is simple once you understand it. You can check your rent using the RERA Rent Calculator and confirm if your landlord’s request follows the law. If something does not seem right, you can contact the Rent Disputes Settlement Centre for help. Keep your contract, Ejari, and rent receipts safe in case you need them. Staying informed and checking the rules before you renew your lease will help you avoid problems and know exactly what to expect.

Start your tenancy with peace of mind. Contact us today to ensure your rent is fair and RERA-compliant, so you can avoid any surprises down the road.

What Is the RERA Rental Index?