Key Takeaways

• Dubai’s RERA Rental Index 2025 allows rent increases of up to 20%, depending on how current rents compare to the updated market benchmarks.
• Tenants and landlords must verify rent adjustments using the official RERA Rent Calculator to ensure legal compliance and avoid disputes.
• A 90-day written notice is mandatory before any rent increase can be applied.
• Engel Völkers Leasing Specialists provide expert support for rent renewals, RERA compliance, and navigating tenant-landlord laws in Dubai.

Table of Contents

1. What Is the RERA Index Why It Matters
2. Understanding the Latest RERA Rental Index Update
3. How the 2025 RERA Update Impacts Tenants
4. Landlord’s Guide to Navigating the RERA Index
5. Anticipated Rental Increases: What Tenants Should Expect
6. Long-Term Benefits of the Updated RERA Calculator
7. How to Use the RERA Rental Calculator for Lease Renewals
8. Legal Guidelines for Rent Increases in Dubai
9. Steps to Take Against Illegal Rent Increases
10. How to File a Rental Complaint with RERA

What Is the RERA Index Why It Matters

The RERA Rental Index is an official pricing guide published by Dubai’s Real Estate Regulatory Agency under the Dubai Land Department (DLD). Updated annually, it ensures fair pricing, market transparency, and legal compliance by providing benchmark rental values for all areas and property types in Dubai.

Key Functions of the RERA Rental Index

• Determines the legal rent increase limits during renewal.
• Reflects area-specific average rental prices.
• Acts as the foundation of the RERA Rent Calculator.
• Helps settle disputes at the Rent Disputes Settlement Centre (RDSC).
• Protects both tenants and landlords from unfair pricing.

In essence, the index maintains market stability, reduces disputes, and ensures predictable lease renewals.

Understanding the Latest RERA Rental Index Update (2025)

The 2025 RERA Rental Index—effective from March 1—introduces critical updates that significantly impact rent renewal calculations in Dubai.

According to industry experts, tenants may now experience rent increases of up to 20%, depending on how their existing rent compares to the updated market standard.

Highlights of the Smart RERA Index 2025

• Rent can only be increased once per year during renewal.
• Tenants must receive 90-day written notice before changes take effect.
• Rent increases must follow official thresholds, based on how the current rent compares to market value.

Permitted Rent Increases Under the 2025 Index

• 0% increase if current rent is up to 10% below market value
• 5% increase if rent is 11–20% below market value
• 10% increase if rent is 21–30% below market value
• 15% increase if rent is 31–40% below market value
• 20% increase if rent is more than 40% below market value

Both parties must verify the legality of any increase using the RERA Rent Calculator.

How the 2025 RERA Update Impacts Tenants

The updated index may cause significant shifts in tenant behavior in 2025.

Key Impacts

• Many historical tenants who preferred renewing leases may now reconsider due to higher rent adjustments.
• Market analysts predict a potential increase in tenant movement, including relocations and property purchases.
• The RERA calculator provides more accurate market reflection, enabling landlords to justify higher renewals.

While renewals are still often cheaper than new contracts, the increasing market alignment may push some tenants toward buying instead of renting.

Landlord’s Guide to Navigating the RERA Index

Understanding the index is essential for landlords to avoid violations and maintain legal compliance.

Tips for Landlords

1. Always use the official RERA Rent Calculator to determine legal increases.
2. Stay updated on annual changes to avoid penalties or disputes.
3. Provide written 90-day notice before implementing rental changes.

This ensures fairness and protects landlords from legal complications.

Anticipated Rental Increases: What Tenants Should Expect

Dubai’s rental market has recorded continuous increases over the past few years. As of August 2025, many communities saw 10–20% rental growth over the previous 12 months.

What Tenants Should Know

• Renewing tenants often still pay less than new tenants.
• The updated index may help moderate rent growth long-term.
• Tenant turnover may rise as renters seek better value or ownership opportunities.

Long-Term Benefits of the Updated RERA Calculator

Industry experts highlight significant long-term advantages:

• The update closes the gap between RERA renewal prices and real market rents.
• Encourages healthier tenant movement and more property listings.
• May attract more investors due to clearer rental yields.
• Promotes greater transparency and pricing accuracy.

This ensures a more stable and balanced property market.

How to Use the RERA Rental Calculator for Lease Renewals

The RERA Rent Calculator, available on the DLD website and Dubai REST app, helps tenants and landlords determine whether a rent increase is legally justified.

The calculator evaluates:

• Location
• Property type
• Number of rooms
• Current rental price
• Market benchmarks

It ensures legal compliance, prevents overcharging, and supports informed decision-making for both parties.

Legal Guidelines for Rent Increases in Dubai

Dubai’s rental law emphasizes transparency and tenant protection.

Key Legal Rules

• Tenants must receive 90-day notice for any rental change.
• No rent increase is allowed if the current rent is less than 10% below market value.
• Maximum rent increase permitted is 20%, based on the RERA index.
• All increases must follow the RERA Rent Calculator results.

Tenants should always review contract terms carefully to avoid unexpected changes.

Steps to Take Against Illegal Rent Increases

If a landlord attempts an unlawful increase, tenants can:

1. Verify the increase using the RERA Calculator.

2. Communicate with the landlord for clarification.

3. File a complaint if necessary.

Illegal increases can be reported to the Rent Disputes Centre (RDC) at the Dubai Land Department.

About Decree 43 (Rent Cap Law)

Decree 43 sets rules for the maximum increase allowed, ensuring landlords cannot arbitrarily raise rental prices beyond RERA guidelines.

How to File a Rental Complaint with RERA

Tenants should prepare written evidence, including:

• Emails and messages
• Rental contracts
• Notice (or lack thereof)
• RERA calculator results

Steps to File a Complaint

1. Submit a formal written complaint to RERA.
2. Attend the hearing at the Dispute Settlement Centre (DSC).
3. If unresolved, the case moves to the Rental Dispute Settlement Committee (RDSC).
4. Appeals may be filed within the allowed timeframe.

Legal investigations may take time, so tenants should remain patient and cooperative.

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Get Expert Rental Advice with Engel Völkers

Whether you’re preparing for a rent renewal, handling a rental dispute, or trying to understand RERA rules, speaking with a professional can save time and stress.

Speak to an Engel Völkers Leasing Specialist today.

Frequently Asked Questions

How often is the RERA Rental Index updated in Dubai?

The index is updated annually to reflect current market trends.

Does the RERA Index vary by location?

Yes. Each area of Dubai has its own average rental benchmarks.

Where can I check the RERA Rent Index?

On the Dubai Land Department website or the Dubai REST app.

Can rent increase if the lease ends mid-year?

Yes—but only according to the current RERA Index and calculator, and only with 90-day notice.