The RERA Rental Index is one of the most important benchmarks in Dubai’s rental market, shaping legal rent increases, tenancy negotiations, and landlord decision-making. Updated regularly by the Real Estate Regulatory Agency (RERA) under the Dubai Land Department (DLD), it provides transparent, data-backed indicators of average monthly rents across areas, property types, and sizes.
For landlords, it’s crucial to use the RERA Rental Index when finalising your rental pricing to remain compliant and price strategically. Here’s how it works and why it matters in 2026.
What Is the RERA Rental Index?
The RERA Rental Index is an official pricing guide that reflects average market rents across Dubai’s neighbourhoods. It uses this data to create legally-permitted rental price ranges for properties based on type and location in Dubai, ensuring fairness and transparency in the rental market.
These benchmarks protect both tenants and landlords by creating predictable lease renewals and keeping prices regulated to maintain market stability. It’s an essential tool for landlords creating or renewing a rental agreement to maintain compliance.
Key purposes:
- Provides a market benchmark for rental values
- Establishes legal rent increase caps at renewal
- Creates transparency and stability in Dubai’s rental market
- Supports dispute resolution processes via the Dubai Rental Dispute Centre
In 2025, the Dubai Land Department updated the RERA Rental Index with the Smart Rental Index, enhanced by AI and granular building-level data to improve real-time accuracy.
How the Index Impacts Rent Setting
When a lease is up for renewal, landlords can only increase rent if the current rent is a certain threshold percentage below the market average shown in the Rental Index. The permitted increase depends on how far below market the existing rent sits:
| Current Rent vs. Market Average | Max Allowable Increase |
| ≤10% below | 0% (no increase) |
11–20% below | Up to 5% |
| 21–30% below | Up to 10% |
| 31–40% below | Up to 15% |
>40% below | Up to 20% |
This structured approach protects tenants from excessive hikes while giving landlords defined ranges to adjust pricing closer to market levels.It’s critical for landlords to run the RERA calculator before issuing a rent increase notice, otherwise, an increase might be invalid under Dubai rental law.
What’s Changed Recently? Smart Rental Index & Market Updates
The Dubai rental market has undergone rapid changes in the last few years, and RERA has adapted in response.
AI-Driven Smart Rental Index
From 2025 onwards, RERA’s index has been retooled with the Smart Rental Index. Using AI and real-time data feeds, it reflects actual rents more dynamically than the old system. This allows:
- more accurate pricing
- consideration of building quality (age, condition, facilities, etc.)
- faster reaction to market trends
2024–2025 Shifts and Reset
After a major recalibration of the RERA calculator in March 2024, many landlords saw their tenants’ existing rents fall substantially below the index, enabling lawful increases up to 20% at renewal.
Recent RERA index data (early 2026) shows that rent growth has moderated compared to past years, with monthly increases in the 5–6% range, and year-on-year changes showing modest movement.
How to Use the RERA Rental Index (Step-by-Step)
Every landlord should know how to run the official index calculator:
How it works:
- Enter the property type, area, and number of bedrooms.
- Input the current annual rent (from Ejari/contract).
- The system returns:
- Average market rent
- Average market rent
Allowed increase percentage (if any)
Important: Remember, you must issue a written notice to tenants at least 90 days before lease-end if you plan to increase the rent. This is required by Dubai tenancy law.
Practical Tips for Landlords
Stay Updated
Rental pricing trends change fast in Dubai. Since the Smart Rental Index updates more frequently, it’s essential to check the index within the 90-day window before lease renewal.
Use Comparative Data
Don’t rely solely on advertised listings on property portals. The RERA index is based on registered contracts, which are more reliable than VAT-free listing prices that may be outdated or aspirational.
Communicate Early
Send renewal notices well ahead of the 90-day deadline as it gives tenants time to respond and reduces disputes.
Avoid Illegal Increases
If you increase rent above the RERA-allowed percentage, tenants can challenge it via the Rental Dispute Centre. This is a costly and time-consuming process for both tenants and landlords and it’s better to avoid it if possible.
Landlord Benefits: Why the RERA Rental Index Matters
The RERA Rental Index creates a more predictable and transparent pricing environment for Dubai landlords. By anchoring rent adjustments to verified market data, it reduces uncertainty when setting renewal rates and helps landlords plan income more accurately across their portfolios.
Because rent increases are governed by a clearly defined framework, landlords are able to justify adjustments with confidence. The index provides a legally recognised reference point that can be used during tenant negotiations, reducing friction and helping both parties align on fair market value.
The shared use of the RERA Rental Index also contributes to fewer disputes overall. When landlords and tenants rely on the same official benchmark, expectations are clearer and disagreements over pricing are easier to resolve. This consistency supports long-term tenancy stability while ensuring landlords remain compliant with Dubai’s rental regulations.
For landlords, the RERA Rental Index is more than a regulation guide: it’s a strategic tool for pricing, compliance, and property performance in Dubai’s competitive rental market.
Maximising short-term rental revenue with Nestify
With the RERA rental index playing a pivotal role in regulating rental charges, it’s important that hosts remain compliant while still earning maximum rental income.
Short-term and mid-term letting doesn’t fall under RERA regulation, giving landlords greater control over their rental earnings. Nestify harnesses this and simplifies your letting management using strategic hybrid letting.
Whether you have a residential property you’d like to harness while away or looking to maximise returns on an investment, Nestify seamlessly manages your letting operations while boosting rental income.