Demystifying Rental Increases: Your Guide to Projecting Rent Hikes in Dubai

In Dubai, tenants have a handy tool at their disposal for forecasting potential rent bumps in the upcoming year – an online service offered by the Dubai Land Department (DLD).

With the 'Rental Index' feature, tenants can input basic details such as their lease expiry date, the number of rooms, and their current rent. This grants them access to estimated rent increases and average rents in their vicinity.

This service offers tenants clarity on expected rental costs, requiring just a few key details to swiftly provide the necessary information.

Ways of accessing the DLD Rental Index:

• DLD's website (Ejari System)
• Dubai REST App
• Dubai Now App
• DLD website

How to Calculate Your Expected Rent Increase in Dubai:

Step 1: Visit the website or choose the relevant mobile application(s) and navigate to the service.

Step 2: Input details such as your Ejari contract’s expiry date, property type, area, number of rooms, and your current annual rent.

Step 3: Receive the required information instantly.

Understanding Rental Increase Calculations:

Rental increase amounts are determined based on how your current rent compares to the market value:

• If your rent is within 10 percent of market value, no increase applies.
• If your rent is 11-20 percent below market value, the maximum increase is 5 percent.
• If your rent is 21-30 percent below market value, the maximum increase is 10 percent.
• If your rent is 31-40 percent below market value, the maximum increase is 15 percent.
• If your rent is more than 40 percent below market value, the maximum increase is 20 percent.

Anticipated Rental Trends in Dubai for 2024:

According to reports, real estate experts are predicting substantial rental hikes in Dubai this year as investors seek lucrative returns.

Analysts suggest rents could surge by up to 20 percent, driven by robust investor demand. With both short and long-term investment opportunities in focus, renters should prepare for continued rapid escalations in prices over the next 12-24 months, as per current forecasts.