Under a new index, landlords in Dubai must provide a 90-day notice period of their intention to raise annual rental charges under the updated property index launched last month.
The implementation of the Smart Rent Index by Dubai Land Department (DLD) has been instrumental in stabilising rental prices and mitigating overall inflation in Dubai for 2025.
By effectively regulating rent increases, the index has contributed to maintaining a balanced cost of living in the city.
The index utilises artificial intelligence to deliver accurate and standardised rental price assessments to cover all residential areas, including key districts, special development zones, and free zones.
This enhances market transparency, ensures fairness, and strengthens confidence in Dubai’s real estate sector.
The new rental value adjustments are determined by a smart index, which calculates the applicable increase based on data drawn from multiple factors, including rental contract values in the building, the average rental values in the area, and the building classification.
Furthermore, a clear framework has been established to manage rent increases, considering the timing of the landlord’s notification to the tenant and the contract renewal date.
“The Smart Rent Index helps curb inflation and enables stakeholders to make informed investment decisions based on reliable data.”
Majid Al Marri, CEO of the Real Estate Registration Sector, Dubai Land Department
This mechanism stipulates that if a landlord notifies the tenant of a rent increase at least 90 days before the contract’s expiration, the increase will be applied only if the Smart Rent Index confirms the property’s eligibility.
However, suppose the new index indicates that the property qualifies for a rent increase, but the landlord did not notify the tenant at least 90 days before the contract’s expiration. In that case, the increase will not be applied.
The recent launch of the Smart Rent Index marks a significant step toward ensuring transparency in rent determination, while reinforcing Dubai’s commitment to digital transformation and market fairness.
This comes at a time when confidence in Dubai’s rental market continues to grow, with over 900,000 lease contracts registered in 2024 — an 8% increase compared to 2023.
