Dubai tenants face higher rents after Rera recalibrates its calculator, reflecting current market rates. Analysts foresee increased demand in newer communities. The revised calculator, effective March 1, considers location, property type, current rent, and rooms for rent increase assessment.
The rental market surged 19% in 2023, down from 27% in the previous year. Cherif Sleiman of Property Finder sees the update as ensuring fair rent increases. Rising rents may prompt tenants to consider homeownership, potentially stabilizing the market.
The recalibration could drive demand in newer communities offering better value. However, it may also increase available rental properties as tenants seek affordability. Rera’s calculator, available online, sets a maximum 20% rent increase annually, with room for negotiation.
Established in 2013, Rera regulates the real estate market. The recalibrated calculator aims to balance landlords’ and tenants’ interests while maintaining a healthy market.