The Dubai Land Department (DLD) has revealed that landlords must notify tenants 90 days before contract expiration for any rent increases, which must be validated by the new Smart Rental Index.
The Smart Rental Index determines rent adjustments through analysis of contract values within buildings, area averages, and building classifications.
If landlords fail to provide the 90-day notice, increases cannot be implemented, regardless of the index’s findings, the Dubai Media Office (DMO) said in a statement.
For cases where landlords provided notice and received approval under the previous index, the renewal date determines which index applies.
Contracts renewed before 2025 follow the previous index, while those renewed during 2025 must comply with the new system.
Dubai Land Department launches AI-powered rental price control system
The DLD reported that the new rental index has helped control rental prices and reduce inflation across Dubai in 2025.
The system uses artificial intelligence to assess rental prices across residential areas, including districts, special development zones, and free zones.
“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 at Dubai Land Department said.
The DLD reports that Dubai’s rental market registered over 900,000 lease contracts in 2024, marking an 8 percent increase from 2023.
The department plans to update the index regularly to reflect market changes.
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