Your landlord says the rent is going up at renewal. Is the increase legal? In Dubai, that question has a clear answer, and it comes from the RERA rental index.
Dubai does not let landlords raise rent by any amount they choose. The increase is capped by law, and the cap depends on how your current rent compares with the average rent for similar homes. Since January 2025, that average comes from the Dubai Land Department's Smart Rental Index, which rates individual buildings instead of treating a whole community the same way.
This article explains how the index and the RERA rent increase calculator work, the legal rules behind them, and how tenants and landlords can check an increase before agreeing to it.
Quick answer: A landlord in Dubai can only increase rent at renewal, must give written notice at least 90 days before the contract ends, and can only raise the rent by 0%, 5%, 10%, 15% or 20%, depending on how far the current rent is below the index average. If your rent is no more than 10% below the average, no increase is allowed. You can check your property on the DLD Rental Index service or in the Dubai REST app.
What Is the RERA Rental Index?
The RERA rental index is the official benchmark for average rents in Dubai. It is issued through the Dubai Land Department (DLD) and its Real Estate Regulatory Agency (RERA), and it shows the average rental value for similar properties.
The index has one main legal job: it decides whether a landlord can increase rent when a contract is renewed, and by how much. Under Decree No. 43 of 2013, the "average rental value of similar units" used to calculate the cap must come from the rent index approved by RERA.
RERA Calculator, Rental Index and Smart Rental Index: Are They Different?
People use several names for the same system, which causes confusion:
RERA rental index or Dubai rental index is the benchmark itself: the average rent for similar units.
RERA calculator or rent increase calculator is the online tool that compares your rent with that benchmark and shows the maximum increase allowed.
Smart Rental Index is the current version of the index, launched by DLD on 2 January 2025, which uses building classification and live contract data.
So when someone says "check the RERA calculator," they mean: run your property through DLD's rental index tool, which now uses the Smart Rental Index.
What Changed With the Smart Rental Index
The older index mainly grouped properties by area, property type and number of bedrooms. That meant a well-maintained tower and an older building with poor facilities in the same community could be treated as similar. The Smart Rental Index was introduced to fix that.
Building Classification
According to DLD's launch announcement, each building is assessed against a set of criteria, including:
Technical and structural characteristics
Quality of finishes and maintenance
The building's location and spatial value
Level of services and facilities, such as maintenance, cleanliness and parking management
The result is that two apartments with the same size and bedroom count can have different benchmark rents if their buildings are rated differently.
What Data the Index Uses
DLD has said the applicable increase is calculated from several factors, including rental contract values in the building, average rental values in the area, and the building's classification. Because Dubai registered more than 900,000 rental contracts in 2024, according to DLD, the index has a large pool of real contract data to draw on.
More Frequent Updates
DLD has committed to updating the Smart Rental Index regularly to reflect market changes. In practice, this means the benchmark for your building can move between one renewal and the next, so you should always check close to your renewal date rather than relying on a figure from last year.
Feature | Older RERA Index | Smart Rental Index (since January 2025) |
|---|---|---|
Main comparison basis | Area, property type, bedrooms | Building classification, contract values in the building, area averages |
Building quality considered | Limited | Yes, through the classification system |
Update approach | Periodic | Regular updates to reflect market changes |
Legal caps on increases | Decree No. 43 of 2013 | Decree No. 43 of 2013 (unchanged) |
90-day notice rule | Required | Required |
The key point: the Smart Rental Index changed how the average rent is calculated. It did not change the legal percentages or the notice rule.
The Legal Rules Behind Every Rent Increase
Three rules work together. An increase has to pass all of them.
Rule 1: The Caps Under Decree No. 43 of 2013
The official text of Decree No. 43 of 2013 sets the maximum increase at renewal based on how far the current rent is below the average rent of similar units:
Your Current Rent Compared With the Index Average | Maximum Increase Allowed |
|---|---|
Up to 10% below the average | No increase (0%) |
11% to 20% below | 5% of current rent |
21% to 30% below | 10% of current rent |
31% to 40% below | 15% of current rent |
More than 40% below | 20% of current rent |
Note that the percentage is applied to your current rent, not to the index average. Some websites merge the 15% and 20% bands or leave one out, so it is worth checking against the decree itself.
Rule 2: The 90-Day Written Notice
Under Dubai's tenancy law (Law No. 26 of 2007, as amended by Law No. 33 of 2008), a landlord who wants to change any term of the contract at renewal, including the rent, must notify the tenant at least 90 days before the contract expires, unless both sides agreed otherwise.
DLD has confirmed how this works with the Smart Rental Index. If the landlord gave notice at least 90 days before expiry, the increase applies only if the index confirms the property is eligible. If the index shows the property qualifies for an increase but the landlord did not give 90 days' notice, the increase is not applied for that renewal.
Rule 3: Increases Only at Renewal
The rent written in your contract is fixed for the contract term. The caps in Decree No. 43 apply "upon renewing" a lease, so a landlord cannot raise the rent halfway through a contract.
Where the Rules Apply
Decree No. 43 states that it applies to all landlords in Dubai, private and public, including those in special development zones and free zones such as the Dubai International Financial Centre. DLD has said the Smart Rental Index covers all residential areas, including key districts, special development zones and free zones, and that it plans to add commercial and industrial indexes.
How to Use the RERA Rent Increase Calculator
The calculator is free and takes a few minutes. You can use it on the DLD website or in the Dubai REST app.
What to Have Ready
Your Ejari contract number, if you have one. If you can't find it, see how to download your Ejari certificate online.
The property's details: area, building, property type and number of bedrooms
Your current annual rent as written in the contract
The contract end date
Steps on the DLD Website
Open the DLD Rental Index service.
Choose the option that matches your situation. You can search using your existing contract details or enter the property details manually.
Enter your current annual rent and the requested property information.
Submit to see the average rent for similar units and the maximum increase allowed, if any.
Save or screenshot the result, with the date visible. You may need it in a negotiation or dispute.
Using the Dubai REST App
The Dubai REST app offers the same rental index check alongside other tenancy services such as Ejari registration and renewal. If you already manage your tenancy in the app, this is often the easiest route. Our article on the Dubai REST app covers its main features.
How to Read Your Result
The result shows two key things: the average rental value the index uses for your property, and the maximum percentage increase allowed. Treat the percentage as a ceiling. A landlord can ask for less, or nothing at all, but cannot legally go above it at renewal.
How to Calculate the Allowed Increase Yourself
It helps to understand the maths so you can sanity-check what a landlord proposes.
Step 1: Find how far below the average your rent is:
(Index average rent minus your current rent) ÷ Index average rent × 100
Step 2: Match that percentage to the band in Decree No. 43.
Step 3: Apply the allowed percentage to your current rent.
Example | Current Rent | Index Average | Gap Below Average | Maximum Increase | Maximum New Rent |
|---|---|---|---|---|---|
A | AED 100,000 | AED 105,000 | 4.8% | 0% | AED 100,000 |
B | AED 70,000 | AED 85,000 | 17.6% | 5% | AED 73,500 |
C | AED 60,000 | AED 80,000 | 25% | 10% | AED 66,000 |
D | AED 60,000 | AED 90,000 | 33.3% | 15% | AED 69,000 |
E | AED 50,000 | AED 90,000 | 44.4% | 20% | AED 60,000 |
These are illustrative figures, not real index values. Notice example D: even though the market average is AED 90,000, the tenant's maximum new rent is AED 69,000. The law limits how quickly rent can catch up with the market.
When your gap falls near the edge of a band, rely on the official DLD result rather than your own rounding.
Common Misunderstandings About the Rental Index
"The index lowers high rents." It does not. If your rent is above the average, the result is simply 0% increase. The index does not order a reduction, although you can use the data to negotiate one.
"The landlord can always add 5% a year." No. If your rent is within 10% of the average, no increase is allowed at all.
"The result means my rent will go up by that amount." The result is a maximum, not an automatic increase.
"The cap applies to new leases." Decree No. 43 applies when renewing a lease. For a brand-new contract, rent is agreed between the parties, although the index is still a useful guide to fair pricing.
"Notice by phone is enough." The notice should be in writing and sent at least 90 days before the contract ends. Keep proof of when it was sent and received.
What Tenants Should Do When They Receive a Rent Increase Notice
Check the date. Was the notice given at least 90 days before your contract ends? If not, the increase should not apply at this renewal.
Run the calculator. Check your property on the DLD rental index and save the result.
Compare the numbers. Is the proposed increase within the allowed percentage?
Reply in writing. If the increase is too high, send your landlord the index result and propose the correct figure. Most cases end here.
Review your contract. Check any clauses about renewal and notice in your tenancy contract in Dubai.
Escalate if needed. If you cannot agree, a case can be filed at the Rental Dispute Center, which uses the index as its main reference for rent disputes.
Renew your Ejari. Once the new rent is agreed, register the renewed contract. Our article on Ejari registration, renewal and fees explains the process.
If the increase is legal but more than you want to pay, it may be worth comparing the market before you decide. Browse current apartments for rent in Dubai or villas for rent in Dubai to see what similar homes cost, and factor in moving costs such as a new security deposit, Ejari and DEWA fees.
What Landlords Should Know Before Raising Rent
For landlords, the rental index is not only a limit. It is also proof that a proposed increase is fair, which makes renewals smoother.
Check the index before you send notice. Base your proposal on the official result, not on listing prices in the area.
Send notice early. Aim for well before the 90-day deadline, in writing, with the proposed new rent stated clearly.
Keep proof of delivery. If the tenant disputes the timing, you will need it.
Think about building classification. Since the Smart Rental Index considers maintenance, cleanliness and facilities, the condition of your building affects the benchmark. Our articles on property maintenance vs property management and annual maintenance contracts (AMC) in Dubai explain how to keep a unit in good condition.
Weigh the cost of vacancy. Pushing for the maximum increase can cost more if a good tenant leaves and the unit sits empty while you find a new one.
Investors assessing yields should remember that renewal increases on existing tenants are capped, so rental income on a tenanted unit may rise more slowly than market rents. Our article on real estate investment in Dubai for foreigners covers how to factor this into your plans.
Shared Housing Has Its Own Rent Indicator
Dubai Law No. 4 of 2026, which regulates shared housing, came into force on 26 August 2026. Under the new framework, DLD is introducing a separate rent indicator for shared housing, along with a registry and standard lease templates. If you rent out rooms or live in a shared unit, read our summary of the Dubai shared housing law to see how the rules differ.
Final Thoughts
The Smart Rental Index gives tenants and landlords the same official number to work from. Before any renewal, check three things: the index result, the 90-day notice date, and the correct band under Decree No. 43. If all three line up, the increase is legal. If one does not, you have a clear basis to negotiate.
To see how rents are moving across the city, our Dubai market reports track the latest trends, and our Dubai communities pages and area guides help you compare neighbourhoods. If rising rents have you thinking about buying instead, our mortgage calculator shows what a monthly repayment could look like next to your rent.
Need help with a renewal, a new rental or pricing your property? Our Luxora agents can walk you through it, or you can contact the Luxora team directly.
