Residential real estate rents in Dubai will be governed by a transparent building classification system after the Dubai Land Department launched its Smart Rental Index 2025.
The index represents a comprehensive system that integrates the latest technologies and real estate expertise, aiming to provide exceptional services that meet the needs of all stakeholders in the real estate market.
It further enhances transparency and fairness in determining rental values, aligning with Dubai’s Digital Strategy and the Dubai Real Estate Sector Strategy 2033 objectives.
Dubai Land Department Smart Rental Index 2025
The index relies on an advanced building classification system that considers all technical and service-related aspects of properties.
Each building is valued based on a comprehensive set of criteria, including:
- Technical and structural characteristics
- Quality of finishes and maintenance
- Strategic location
- Spatial value
- Services and facilities (such as maintenance, cleanliness, and parking management)
The mechanism aims to ensure accurate and fair determination of rental values, reflecting each property’s quality and advantages.
Majid Al Marri, CEO of the Real Estate Registration Sector at Dubai Land Department, said that the launch of the ‘Smart Rental Index’ marks a pivotal transformation in the regulation and development of the real estate sector in Dubai.
He highlighted that this initiative enhances transparency, builds trust, and provides stakeholders with a balanced and sustainable environment.
He said: “This index relies on artificial intelligence technologies and a building classification system and provides fair and accurate rental valuations, strengthening Dubai’s position as a global investment destination.”
“In 2024, the total number of registered rental contracts exceeded 900,000, reflecting an 8 per cent growth compared to the previous year. This increase reflects the growing confidence in the Dubai real estate market, enabling all parties in rental agreements to make well-informed, ultimately achieving the aspirations of all parties and enhancing the long-term sustainability of the market.”
The index is based on unified and clear criteria to ensure transparency in the property valuation process. A precise calculation mechanism was developed that considers all factors influencing rental value, including the real estate market condition; it is characterised by its flexibility due to the continuous updating of standards to keep pace with market changes, ensuring that the expectations of both landlords and tenants are met.
Khalid Al Shaibani, Director of the Rental Affairs Department at Dubai Land Department, delivered a detailed presentation on the new rental index. He highlighted the advantages of the innovative index and its role in enhancing transparency and developing the real estate sector, contributing to creating a balanced and sustainable environment that serves all relevant stakeholders.
Earlier, Dubai Land Department launched a series of initiatives to enhance the sector’s efficiency and simplify procedures.
These include interactive rental contracts that allow landlords and tenants to register, renew, and cancel contracts seamlessly through the Dubai REST app, as well as interactive property management contracts that enable property owners and management companies to register and modify contracts directly via the smart app, eliminating the need for traditional procedures.
Additionally, DLD introduced the “Model Tenant Classification” system, an innovative tool to classify tenants’ credit ratings and obtain credit reports through the Ejari system and the smart app for interested parties.
In line with its commitment to transparency and fairness, Dubai Land Department applies a clear system for rental increases through the index, in accordance with Decree No. (34) of 2013.
The increase percentages are determined based on the difference between the current rental value and the average market rent.
Rental increases start at zero per cent for rents that are less than 10 per cent below the average market rent and can reach up to 20 per cent for rents that exceed the average by more than 40 per cent.
This system aims to ensure a fair balance, protecting the rights of both landlords and tenants while contributing to the market’s stability.
The index covers all residential areas in Dubai, including key areas, special development zones, and free zones, ensuring the standardisation of evaluation and pricing criteria across the emirate.
It provides landlords with a reliable tool to evaluate properties and determine rent increases transparently while offering tenants protection from unjustified increases, thereby enhancing their confidence in the real estate market.
Dubai Land Department is committed to the ongoing development of the index, with plans to expand its coverage to include additional real estate sectors, such as commercial and industrial indexes, and to introduce new services aimed at enhancing the user experience and building trust in the market.
Future initiatives will include providing training programmes, offering specialised customer service, and ensuring continuous technical support, in addition to establishing multiple communication channels to meet the diverse needs of beneficiaries.
Follow us on
