In Dubai's ever-evolving real estate landscape, landlords seeking rent revaluations now face updated procedures outlined by the Real Estate Regulatory Authority (RERA). As of April 1, 2024 landlords can still request a rent revaluation if they believe they are entitled to a higher asking rent than suggested by the updated Rental Index. However, this process now requires attaching a judgment or legal order as per the new requirements set forth by RERA.
Previously, landlords had the option to apply for a rental evaluation to adjust the current market benchmark, but the updated RERA Rental Index calculator has shifted this practice. According to insights, landlords can no longer increase rental prices above the benchmark provided by the updated calculator. While the option for re-evaluations still exists, the process has undergone significant changes.
To initiate a rent revaluation, landlords must navigate through the Rental Dispute Centre (RDC) via the Ejari portal and apply for a case to obtain the necessary legal order. This requirement adds a layer of transparency and fairness to the valuation process, ensuring that changes align with the updated RERA calculator.
The RERA calculator update, implemented on March 1, now serves as the single source for calculating rental increases. With a substantial volume of rental contracts renewed in Q1, totaling 72,885 contracts, the updated calculator provides both landlords and tenants with a reliable benchmark for rental adjustments. Leveraging the RERA calculator as the sole reference point fosters confidence and fairness in the valuation process.
As Dubai's real estate market continues to evolve, landlords navigating rent revaluations can rely on the updated RERA procedures to ensure transparency and compliance with market standards. By adhering to these guidelines, landlords and tenants alike can navigate rental adjustments with clarity and confidence in Dubai's dynamic real estate landscape.