Dubai Land Department (DLD) has launched the innovative Smart Rental Index, designed to provide tenants, landlords, and investors with accurate and transparent rental valuations.
Covering all residential areas across Dubai, including districts, special development zones, and free zones, the index incorporates advanced technologies to evaluate rental values comprehensively.
The index introduces a star rating system, evaluating residential buildings from one to five stars based on factors such as amenities, quality, maintenance, and facility management. It also includes data on both old and new buildings, along with average rents in specific areas and individual buildings.
Key Features of the Smart Rental Index
- Accessible Platform: Tenants and landlords can access the index through the DLD website.
- AI-Powered Analysis: The index uses artificial intelligence to assess technical and service-related aspects of buildings, ensuring fair rental valuations.
- Comprehensive Coverage: It evaluates structural characteristics, finishes, maintenance, location, and facilities such as parking, cleanliness, and management.
- Focus on Residential Buildings: Commercial buildings are excluded from this index.
Impact on Rental Trends
With the new system, rental values in higher-rated buildings are expected to rise. Rental increases align with Decree No. (34) of 2013, which specifies percentage hikes based on the current rent's deviation from the market average.
For instance, rents that exceed the market average by over 40% can increase by up to 20%.
Owners of older buildings can also raise rents by upgrading and renovating properties to achieve higher ratings. Unlike the previous rental index, which was updated quarterly or annually, the Smart Rental Index is updated daily, ensuring it reflects the latest trends and data.
Encouraging Investments
The Smart Rental Index is anticipated to attract more foreign investment by enhancing transparency and offering investors a clearer picture of rental income potential. This move aligns with Dubai's vision to bolster its real estate sector and provide a fair and efficient rental market for all stakeholders.
News Source: Khaleej Times
