What the RERA rental calculator reset means 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 – an online tool that helps landlords and tenants determine the viability of rental increases.

The 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 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".

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