RERA Rental Index Dubai 2025: Update for Tenants & Landlords

What Is the RERA Index & Why It Matters

The RERA rental index is a pricing guide issued by Dubai’s Real Estate Regulatory Agency (RERA), part of the Dubai Land Department. Updated regularly, the RERA index helps ensure transparency and fairness in the rental market by defining the legally permitted rent ranges for properties across different areas and property types in Dubai.

By providing a benchmark for what constitutes a fair market rent, the RERA index protects both landlords and tenants, enabling predictable lease renewals, reducing disputes, and maintaining market stability. It forms the basis for Dubai's rent increase laws and is essential for any tenant or landlord entering or renewing a rental agreement.

Key features of the RERA rental index include:

• Area-specific average rental values based on current market data

• Legally permitted rent increase thresholds based on current rent vs. market rent

• Annual update cycle to reflect changing market conditions

• Use in the official RERA rent calculator to determine if a rent increase is allowed

• Basis for dispute resolution by the Dubai Land Department’s Rent Disputes Settlement Centre

Understanding the Latest RERA Rental Index Update

The latest RERA rental index update marks certain landmark changes for Dubai’s real estate market. The new index, which was implemented effectively from March 1, allows landlords to increase rent up to a permissible limit.

Experts note that some tenants may face increases of up to 20%, depending on how far their current rent is below the market rate as per the updated RERA calculator.

Some of the highlights of the Smart RERA Index include:

• Rental increases can only be applied once a year by landlords during the contract renewal period. Tenants must be notified of the increase 90 days in advance. 

• Both parties are advised to verify rent increases on the RERA index calculator to verify whether the new prices fall within the legal range. 

• No rent increase is applicable if the current annual rent is below 10% of the calculated market value. 

• A maximum rent increase of 5% is applicable only if the current annual rent is between 11% and 20% under the calculated RERA market value. 

• If the current annual rent under the calculated RERA market value is 21% and 30%, a maximum increase of 10% is applicable.

• If the current annual rent under the calculated RERA market value is 31% and 40%, a maximum increase of 15% is applicable.

• A maximum rent increase of 20% is applicable only if the current annual rent is over 40% under the calculated RERA market value.

How the 2025 RERA Update Impacts Tenants

Long-term tenants in Dubai have an important decision to make after the new RERA index. Previously, many renters chose to renew their leases, as renewing a lease often made more financial sense than moving to a new property

Although rent renewals in Dubai increased in 2024, the 2025 updates to the RERA index calculator may reverse the trend. Analysts have observed that while the increased renewal rate may reflect tenants’ desires to avoid the costs and risks of relocating, landlords can now often significantly hike rents due to a more accurate reflection of open-market pricing. 

The revisions to the RERA index may cause many tenants to either buy a property or move out of their current rental and seek a new property. 

Landlord’s Guide to Navigating the RERA Index 

Landlords in Dubai need to understand the Dubai RERA rental index as it not only ensures compliance with the law but also helps them avoid any legal complications or disputes with their tenants. Here are some tips for landlords to navigate seamlessly around the RERA index:

• Calculator: Using the RERA rental index calculator will give you the correct rental price estimates for your property, based on data from Dubai’s entire property market. This will help you set a fair rental price.

• Updates: The RERA index is normally subject to annual changes depending on Dubai’s real estate landscape and any changes within it. Staying informed about changes will ensure compliance with regulations. 

Anticipated Rental Increases: What Tenants Should Expect

The increase in rental prices of real estate in Dubai adds to the already surging prices that have been dominating the market for the past few years. As of August 2025, rental increases of 10-20% over the last 12 months have been witnessed in many communities across Dubai, following consistent increases in 2024.

In 2025, tenants who are renewing their contracts will still likely pay lower rent in comparison to tenants signing new rental leases. Industry experts are also optimistic that the updated RERA index calculator could contribute to lower rent prices in the long run.

Long-Term Benefits of the Updated RERA Calculator

While the immediate changes to the RERA index have caused noticeable shifts in market dynamics, industry experts believe that the long-term benefits of the changes and the updated RERA index calculator should not be discounted. 

Insights by Business Outreach show that before the RERA index update, there was a significant gap between RERA’s benchmark renewal prices and the actual market rents - especially in sought-after neighborhoods. This resulted in a lack of supply in the market as tenants rarely moved out of their homes. The updated RERA index could encourage more real estate listings, increase tenant turnover, potential interest from investors, and potentially stabilize the soaring prices over time. 

This may also motivate tenants to purchase properties in Dubai rather than simply renting them. Landlords can adjust rents within regulated limits, allowing fairer alignment with current market rates.

Overall, adjusting the RERA calculator could invite greater balance, transparency, and efficiency to Dubai’s property market as the regulated renewal prices will be well-aligned with current market conditions. The regular updating of the RERA calculator will also ensure a dynamic yet balanced property market. 

How to Use the RERA Rental Calculator for Lease Renewals

The Dubai Land Department has introduced an online rental index calculator, which not only simplifies the leasing process but maintains fairness and transparency between landlords and tenants. 

It utilizes criteria such as open-market pricing, location, current rent, property type, and the number of rooms to determine the rental prices of a property and whether an increase in rent is applicable or not. 

The RERA rent calculator offers users potential insights about rent adjustments during their next lease renewal. Along with that, it ensures that rent increases remain under legal limits - allowing both parties (landlords and tenants) to make an informed decision. 

Legal Guidelines for Rent Increases in Dubai

It is important for tenants in Dubai to be aware of their legal rights and rental laws. Those who are unaware may face the risk of illegal contractual changes by their landlord.

One of the most common disputes between both parties is when landlords increase the rental amount. While rent increases can be permissible, there are certain legal guidelines that a tenant must be aware of to protect their rights.

The most important legal guideline dictates that tenants must be given a 90-day notice regarding changes in their contract, such as increasing the rent. If a landlord does not provide this notice, tenants can legally refuse a changed rental amount. 

Tenants must also carefully review their contract during rental increases, in case there have been further changes made by the landlord. According to Dubai law, landlords cannot increase their property’s rental amount if the rent of a unit is less than 10% below the average rent of similar units in their area. Currently, the maximum rental increase rate is 20%. 

Steps to Take Against Illegal Rent Increases

If a tenant is facing harassment in the form of an illegal rent increase by their landlord, they can file a case with the Rent Disputes Centre (RDC) at the Dubai Land Department. The Dubai government even issued a rent decree in 2013 to prevent a rise in high rental dispute cases.

Decree 43 applies to landlords across public and private sectors. Article 1 of the decree provides a rent cap layered structure, guiding the maximum percentage permitted in rental increase. The rent cap differs depending on the property rental value and the average market rental rate for properties in specific areas of Dubai. 

Tenants may first attempt communicating with their landlords to amicably arrive at a solution. Utilizing the rental calculator to verify whether a rent hike is warranted or not is an excellent way to protect one’s rights. However, if the landlord is unresponsive, tenants can approach RERA through their website, or visit their office.

How to File a Rental Complaint with RERA 

Before filing a complaint with RERA, tenants must ensure that they have evidence against their landlords - preferably in the form of written communications such as emails. 

Tenants can draft a formal letter to RERA and outline details of their issues, relevant dates, attempts at amicable solutions (if applicable), and supporting documents that may bolster their case. 

They will then be required to visit RERA’s Dispute Settlement Centre (DSC) after submitting their complaint. Both parties (tenant and landlord) will be given an opportunity to present their case and provide evidence. The DSC will act as a mediator between both parties and if an amicable solution is agreed upon, the matter stands resolved. 

If there is no solution, however, the tenant’s case may be transferred to the Rental Dispute Settlement Committee (RDSC) - wherein a judgment will be issued depending on the evidence and merits of the case. If either party disagrees with the judgment, they may approach the Appeals Committee within a specified timeframe for an appeal. 

Along with keeping and tracking important documents, tenants must remain patient as legal proceedings may take a longer time than expected. 

In conclusion, over time, the updated RERA index is expected to foster a more balanced and efficient property market, benefiting all stakeholders in Dubai. As the market adapts, both landlords and tenants can look forward to a more equitable rental landscape.