If you’re interested in understanding the rules governing rental increases in Dubai, this article is tailored for you.
RERA (Real Estate Regulatory Agency) oversees rental increases in Dubai, and the most efficient method to access rental increase information is through the Dubai Rest app.
To begin, open the app and navigate to the “rental index” section.
Here, you have the option to input property details manually or locate the property on the map. Let’s opt for the manual entry method. Fill in details such as the rental index type, contract end date, property type, area, number of bedrooms, and current annual rent. Then, click on “calculate.”
We will explore five distinct use cases. In the first scenario, we’ll consider an annual rent of 40,000.
During the renewal of property lease contracts, if the unit’s rent is up to 10% less than the average rental value of similar units, there is no increase. In our example, the range specified by RERA is 38,000 to 47,000. Let’s recalculate using a different annual rent.
Instead of 40,000, let’s input 38,000. The calculator indicates that the maximum increase amount is 5%, as the rent falls 11 to 20% below the average rental value of similar units.
Now, let’s consider an annual rent of 33,000. The maximum increase amount is 10%, as the rent is 21 to 30% less than the average rental value of similar units.
Let’s adjust the annual rent to 29,000 and recalculate. The maximum increase amount is 15%, as the rent is 31 to 40% less than the average rental value of similar units.
For our final calculation, let’s set the annual rent to 25,000. The maximum increase amount is 20%, as the rent is more than 40% less than the average rental value of similar units.
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