What is the RERA rental calculator and what does the reset mean for the market
While the change is welcome news for Dubai landlords and will increase demand in ‘far out’ communities, analysts say it’s good for the rental sector overall.
In a move to reflect open market pricing more accurately, RERA (the Real Estate Regulatory Authority, part of Dubai Land Department) recently recalibrated the RERA Calculator – Dubai's online property rental calculator that helps landlords and tenants determine the viability of rental increases.
What is the RERA calculator?
The RERA rent calculator considers factors such as property type, contract expiration date, location and current rent. The update is another step in the authority’s efforts to improve transparency and efficiency across the emirate’s soaring property market.
For landlords, this reset will certainly feel justified says Jake Walton, Leasing Director at haus & haus.
“It’s a win for landlords who have had tenants in place paying much lower prices than the new market rate. They will now either get a fairer rental return by increasing the rent as per the calculator, or better still have the opportunity to re-rent at the full market price due to the existing tenant vacating because of the allowable increase,” he said.
Walton also predicts a slight rise in prices in communities deemed “far out” as more tenants enter the market in these areas looking for suitable accommodation.
He added: “We may now also see more buyers come to the market who had previously decided to delay a potential purchase due to the low rents.”
On a cheerier note for tenants, while some will face steeper costs in the short run, the changes from the RERA rental calculator in Dubai may help moderate rent increases on average going forward.
Market analysts also say the adjustment will bring greater balance and fluidity to Dubai’s rental sector by aligning regulated renewal prices with current market conditions.
Cherif Sleiman, chief revenue officer at Dubai portal Property Finder said in the media the recent changes are part of RERA’s efforts to balance a fair rent increase across different communities "while fostering a healthy environment for investors, ensuring competitive rental yields aligned with global standards".
How to use the RERA rental calculator
You can utilise the RERA rental index calculator through two main channels provided by DLD:
- The RERA rent calculator website serves as an online portal for estimating annual rents.
- The Dubai REST App includes the rental index calculator feature.
To use the RERA rental calculator available on the DLD website or through the Dubai REST mobile application, follow these steps:
- Choose the appropriate tab based on your requirement (Title Deed Number, Ejari Contract Number, residential, commercial, industrial, staff accommodation, or location map).
- Enter the necessary details such as property type, area, and number of bedrooms (for residential) or area square feet (for commercial/industrial).
- Depending on your selection, input additional information such as current rent, lease end date, etc.
- Click on "Calculate Rent" to view the estimated annual rent based on current market trends.
- The results will display the annual rental range for the selected property type and area, along with any percentage increase if applicable.
- You can download the details as a PDF for comparison and future reference.
For commercial and industrial properties, users should enter the area square feet instead of bedrooms. The process for shared accommodation is like residential properties.
Using the RERA rental price calculator is recommended by RERA for both landlords and tenants to prevent potential disputes. It is crucial for all parties to adhere to RERA tenancy laws for a harmonious rental relationship.
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