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Comparison

RERA Rental Index vs Market Rate: Which Governs Your Rent?

A fundamental confusion in Dubai rental disputes is between what landlords believe the market supports versus what the law permits. These two figures are often very different — and the law is clear about which one prevails at the RDSC.

A

RERA Rental Index (Official)

The government-administered rental price benchmark operated by RERA, updated periodically, and accessible via the Dubai REST app. Under Decree No. 43 of 2013, this is the legally prescribed standard for permitted rent increases.

B

Market Rate (Property Portals)

The asking prices for rental properties listed on platforms such as Property Finder, Bayut, and Dubizzle — reflecting current supply and demand rather than any regulatory ceiling.

Feature-by-Feature Comparison

Feature
A — RERA Rental
B — Market Rate
Legal Authority
Legally binding under Decree No. 43 of 2013. The mandatory benchmark for all Dubai rent increases.
No legal authority. Asking prices are aspirational; landlords are not entitled to charge market rates if they exceed the RERA Index.
RDSC Acceptance
Accepted as definitive evidence at the RDSC. Primary basis for the tribunal's rent increase analysis.
Not accepted as a legal basis for exceeding the RERA Index. RDSC has consistently rejected portal comparisons.
Update Frequency
Updated periodically (typically quarterly) by RERA based on market research.
Updated in real time as landlords add and remove listings.
What It Reflects
A regulated benchmark calibrated to produce fair rent outcomes within RERA's policy framework.
Current asking prices — which may significantly exceed what tenants in occupation are legally required to pay.
Tenant Rights Impact
Protects existing tenants from market rent fluctuations. Your renewal rent is capped even if the market rises.
Reflects what new tenants entering the market may be asked to pay — but does not determine the lawful renewal rent for existing tenants.
Landlord Reliance
Landlords can only legally rely on this index when calculating permitted increases.
Landlords frequently cite portal prices to justify increases — this argument is rejected by the RDSC as legally irrelevant.

Which to Choose — By Scenario

Landlord proposes AED 130,000 citing Property Finder listings

The RERA Index caps the increase regardless of portal prices. The RDSC will apply the Decree 43 tiers to the RERA Index value.

A wins

Tenant moves into a new property and negotiates rent

At initial rent setting (not renewal), market forces apply. The RERA Index caps only apply at renewal based on the current registered rent.

B wins

Landlord claims index doesn't reflect building quality upgrades

Even if the building has been improved, the RERA Index is the binding benchmark. Quality arguments do not override the legal standard at the RDSC.

A wins

Verdict

For existing Dubai tenants at renewal, the RERA Rental Index is the only legally relevant benchmark. Market rates on property portals are the starting point for new tenancies and for negotiations — they are not a legal basis for exceeding the index at renewal. The RDSC has consistently and categorically rejected portal evidence as a substitute for the RERA Index. Tenants who understand this distinction have a clear, document-based path to challenging any above-index rent increase.

Frequently Asked Questions

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