Episode 46: All you need to know: RERA Calculator Reset

In this insightful episode of Dubai Real Estate Unplugged, our team unpacks one of the most significant regulatory changes to hit the rental market in recent years - the RERA calculator reset. This update is reshaping how rents are calculated across Dubai and has wide-reaching implications for both tenants and landlords.

 

Understanding the RERA calculator reset

The RERA rent calculator - run by the Dubai Land Department - is a government-backed tool that defines fair rental rates for properties based on type, location and size. Its latest reset in 2024 has realigned rental benchmarks in many communities, particularly in popular or rapidly developing areas where market values have evolved significantly.

This RERA calculator update sparked conversation throughout the industry, particularly around rent hikes, tenancy renewals and how landlords might legally adjust contracts within the boundaries of tenancy law.

For a deeper dive, read our full breakdown: What the RERA Rental Calculator Reset Means for the Market.

 

What the RERA calculator reset means for the Dubai market

The RERA calculator update in 2024 marked a significant shift, allowing greater increases in rental caps for certain areas where rents had previously lagged behind the market average. As a result, many tenants were surprised by higher renewal demands, while landlords welcomed the opportunity to bring contracts closer to true market value.

For some, the update provided much-needed balance. For others, especially long term renters, it raised concerns about affordability and the potential for increased evictions.

This change is especially relevant for investors using the RERA rent calculator to estimate yield potential or planning strategies around tenant turnover. Understanding how the tool works and how it’s now calibrated is critical in today’s landscape.

 

How the RERA rent calculator affects landlords and tenants

For landlords, the updated calculator may provide room for increased revenue, but it also brings stricter scrutiny, particularly regarding legal justifications for evictions or rent increases. Landlords must ensure they adhere to the allowable limits and provide proper notice under tenancy law.

For tenants, it’s important to know your rights. Just because the calculator permits an increase doesn’t always mean it will be enforced. Negotiation is still possible, especially in competitive or oversupplied areas.

Whether you’re renting out an apartment in Dubai Marina or a villa in Arabian Ranches, the RERA Dubai calculator is your go-to benchmark for understanding the legal framework behind rent adjustments. 

Catch Episode 46 of Dubai Real Estate Unplugged to hear the full breakdown of the RERA calculator reset, straight from Dubai property professionals. Subscribe to the podcast to stay up to date with every market shift, insight and investment tip.

Listen and subscribe on your favourite podcast platform. 

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Frequently asked questions about the RERA calculator reset

The RERA calculator reset was initiated due to a growing mismatch between the calculator’s rent caps and actual market rates. Dubai’s rental market has seen strong growth in recent years and this reset brings the calculator in line with current demand and pricing trends.

High demand areas such as Dubai Marina, Downtown Dubai, Jumeirah Village Circle and parts of Dubai Hills Estate saw notable changes. In some cases, allowable rental increases were higher than tenants had seen in years.

Landlords may use the updated RERA rent calculator to justify a rent increase but only if the tenant’s current rent is significantly below the new benchmark. Increases must still comply with the UAE Tenancy Law, including proper notice periods and thresholds.

Tenants renewing contracts may face rental increases if their current rent falls below the revised index range. However, increases are regulated and cannot exceed the percentage limits defined by RERA, based on the gap between the current rent and updated benchmark.

While the update itself doesn’t encourage evictions, landlords may be more inclined to issue non-renewal notices if they believe they can achieve higher rental returns with a new tenant. However, evictions still require valid legal reasons and strict adherence to the tenancy notice laws in Dubai. 

Get in touch with the haus & haus team

Understanding the impact of the RERA rent calculator on your property goals is more important than ever. Whether you're a tenant trying to make sense of a renewal notice, or a landlord seeking to maximise returns in line with the RERA calculator update, our experts are here to help.

At haus & haus, we provide honest guidance backed by data and deep market insight. From navigating the RERA Dubai calculator to advising on high-yield investments, we’re your go-to real estate partner in Dubai.

Explore your options and get in touch with us to speak to a member of our experienced team. 

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