Dubai’s Best-Kept Rental Secret: Find Areas Where Rents Are Below the RERA Index!

Some Dubai Tenants Still Paying Below RERA Rental Index Rates, Industry Experts Suggest

Industry experts report that certain tenants in Dubai are still paying rents below the RERA Rental Index rates. Following a surge in rental prices over the past three and a half years, the RERA index was updated in March to align rental rates with market prices, reflecting average rents across different property types and locations in Dubai.

Anmoll D Shroff, founder and chairman of Elton Group, notes that areas such as Dubai South and Damac Hills 2 are more affordable compared to central hubs and established regions like Dubai Marina and Jumeirah Lake Towers. These outer regions offer more budget-friendly options due to lower demand compared to central areas.

Efforts have been made to promote the updated RERA Rental Index to influence rental adjustments across various localities. Shroff highlights the Dubai Land Department’s ‘Ejari’ smart application, which includes a Rental Increase Calculator to help determine fair rents based on the latest index rates.

Betterhomes leasing director Rupert Simmonds confirms that some areas and buildings in Dubai feature rents below the RERA Rental Index. He explains that actual rental costs can vary depending on factors such as the building’s age, condition, amenities, neighborhood, and demand. Affordable areas include Muraqqabat, Al Qiyadah, Al Tromia, and newer locations like International City and JVC.

Anisha Sagar, director of property management at Allsopp and Allsopp, adds that some long-term tenants may be paying less than current market rates due to gradual rent increases based on their original lease terms.Additionally, older buildings in certain areas may offer lower rents compared to newer buildings in high-demand locations like the city center. It’s important to remember that the RERA Rental Index serves only as a guideline, and actual rental rates can differ based on various factors, including the property’s location, size, and condition.