The RERA Rental Index explained
The RERA Rental Index is the official tool of the Dubai Land Department for determining the market-conforming rental value of a property. The index is updated regularly based on current Ejari registrations in each building and community. At contract renewal, the RERA Rental Index Calculator determines the maximum permitted rent increase.
Important: the RERA Rental Index applies only to renewals, not to new contracts. With a new contract you are free to ask any rent the market will accept. This means the initial pricing is crucial: a starting price that is too low limits your scope for increases at renewal, while a price that is too high leads to longer vacancy.
Comparative market analysis (CMA)
The basis of sound rental pricing is a Comparative Market Analysis. We analyse recent tenancy contracts in your building based on Ejari data, compare them with active listings on Property Finder, Bayut and Dubizzle, and adjust for property-specific characteristics such as floor level, view, furnishing and state of maintenance.
An apartment on a high floor with sea view in Dubai Marina typically lets for 10–20% more than an identical apartment on a low floor with city view. Furnished properties achieve 15–30% more than unfurnished ones in the same community. A recently renovated apartment with a modern kitchen and bathroom justifies a premium of 10–15% over a comparable property with original finishes.
Seasonal effects and timing
The Dubai rental market follows pronounced seasonal patterns. The working season, September to March, is by far the busiest period. Many expats start new employment contracts in September or January and actively search for housing at that time. Demand is strongest in these months and rents are on average 5–10% higher than in the summer months.
Summer (April–August) is characterized by a decline in demand. Many expats leave for the summer holidays and new arrivals are scarce. If your tenancy ends in summer and you need to find a new tenant, slightly lower pricing is prudent to avoid extended vacancy. We factor the season and current market dynamics into every pricing strategy.
Furnished versus unfurnished: the premium
The difference in rent between a furnished and an unfurnished property is significant. In popular areas such as Dubai Marina, Downtown and JBR, the furnished premium is 15–30%, depending on the quality of the interior. An unfurnished 1-bedroom apartment in Dubai Marina letting for AED 80,000 per year can achieve AED 95,000–100,000 furnished.
The trade-off is not just the higher rent, however. Furnished letting brings higher wear-and-tear costs, a higher deposit exposure (10% versus 5%) and more operational complexity at tenant changeovers. The furnishings also need periodic renewal. We calculate the net yield difference for each property after all costs, so you can make a well-informed decision.
The number of cheques as a pricing instrument
In Dubai the number of cheques per year is an important negotiating instrument. Tenants who pay the full annual rent in one cheque upfront typically expect a 5–10% discount compared with tenants paying in twelve monthly instalments. This reflects the time value of money and the risk to the landlord.
From your perspective as landlord, one cheque offers maximum security: the full annual amount is in your account. Four cheques is a good middle ground: you receive a substantial amount each quarter and the tenant does not have to produce the entire annual rent at once. We advise on the optimal cheque structure based on the location, the type of tenant and market conditions.
Our role in setting the rental price
Augusta Properties carries out an extensive market analysis for every property before advising on a rental price. We combine Ejari transaction data, current listing prices, seasonal patterns and property-specific characteristics into a substantiated recommendation. This recommendation is not a fixed price but a strategy: which asking price, which cheque offer and which marketing approach give you the best chance of letting quickly at an optimal price.
At contract renewal we calculate the RERA Rental Index for your property and advise on the optimal increase. Sometimes it is strategically wiser to retain a good tenant at a limited increase than to apply the maximum RERA increase and risk the tenant leaving.