22 minutes read

Written by
Karina Saakova
The Emirate of Dubai proudly unveiled its new Smart Rental Index 2025, a revelation that empowers residents and homeowners alike in improving their journey towards owning a dream house or maximizing the renting experience. The improved Dubai Smart Rental Index was launched by the Dubai Land Department on Thursday, January 2, 2025.
The new Dubai Smart Rental Index is the latest tool launched by the DLD to help tenants, investors, and landlords with rental pricing. The tool features a new classification system that will be used to determine whether a unit can justifiably increase its rent based on specific criteria. This tool aims to add greater transparency, build trust, and provide tenants, landlords, and investors with a fair environment.
The tool, powered by artificial intelligence (AI) builds a classification system aimed at providing a fair evaluation. It will cover all residential areas in the Emirate not limited to key districts, free zones, and special development zones. The use of AI ensures that the same evaluation and pricing criteria will be applied across all of Dubai.
m relying on artificial intelligence (AI), as a new basis for rental increases. This new building classification considers all technical and service-related aspects of properties and rates residential buildings from one star to five stars. The criteria include:
When a unit is applicable for a rental increase through the new building classification system, any increase will still continue to apply in accordance with Dubai Land Department Decree Number 43, which clearly states that:
This initiative provides an additional neutral and trusted source for all parties in the real estate and housing sector in Dubai. The Dubai Land Department recognized the need to provide a fairer and more accurate rental valuation to tenants, investors, and landlords across the city, thus, introducing the new and improved Dubai Smart Rental Index 2025.
This new Dubai Smart Rental Index will offer a myriad of benefits to tenants in the Emirate.
All in all, the newly improved tool delivers an enhanced rental experience to tenants across Dubai.
Similarly, the new Dubai Smart Rental Index 2025 offers a range of positives for landlords as well.
Ultimately, it will help reduce disputes and justify pricing strategies giving both parties space to negotiate and come to an acceptable conclusion.
As part of the release, the RERA Rent calculator has been updated for the first time since March 2024. Tenants can enter their Ejari number to get a more accurate rental range. Head to the Dubai Land Department website to access the new index and revel in Dubai’s latest act to meet the objectives of the Digital Strategy and the Dubai Real Estate Sector Strategy 2033.
Dubai Land Department’s CEO of the Real Estate Registration Sector Majid Al Marri emphasized the launch of the new Dubai Smart Rental index during a recent press conference. He remarked that the Smart Rental Index marks a pivotal transformation in the regulation and development of the real estate sector in Dubai.
Al-Marri highlighted that the initiative enhanced transparency, built trust, and provided stakeholders with a balanced and sustainable environment.
“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.”
Furthermore, Al Marri added, “In 2024, the total number of registered rental contracts exceeded 900,000, reflecting an 8 percent 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 decisions, ultimately achieving the aspirations of all parties and enhancing the long-term sustainability of the market.”
Earlier in 2024, The Dubai Land Department also launched a series of other initiatives with the goal of enhancing the real estate sector’s efficiency and streamlining procedures. These include:
Accordingly, the Dubai Land Department is committed to the Dubai Smart Rental Index’s ongoing development. The DLD also plans to expand its coverage in the future to include additional real estate sectors, such as commercial and industrial indexes, and to bring new services focused on improving user experience and building trust in the market.
Future plans will also include training programs, specialist customer service, and ongoing technical support, in addition to setting up several channels of contact to accommodate various customer needs.
The Dubai Smart Rental Index is an AI-powered tool that collects accurate rental data to provide fair rental rates for properties across the Emirate of Dubai.
The Dubai Land Department sets the criteria and the Index assists landlords to set justifiable rates while assisting tenants to avoid overpaying.
The Index takes into account a property’s technical and structural characteristics, the quality of finishes and maintenance, location, spatial value, and services/facilities provided.
The Index determines if a property receives a higher rating, this would mean a rent increase.
Landlords can request a rent increase based on the new index. However, all changes must be communicated in writing with a 90-day notice period.
Tenants can refer to RERA’s Rental Increase Calculator to determine the maximum increase limit and confirm if the rent increase is justified.
Tenants can always challenge unjustified increases anytime through the Rental Dispute Settlement Centre (RDC) if their landlord does not comply with RERA regulations regarding rental increases.