Dubai’s property market is set for a major transformation with the introduction of a new Smart Rental Index by the Dubai Land Department (DLD) in January.
Industry experts say the initiative will foster transparency, fairness, and precision in rental evaluations, ensuring rents better reflect individual building qualities rather than broader area averages.
The index, leveraging advanced technologies such as AI and metadata from systems like Makani and Ejari, will address inconsistencies in the current rental market. Rohit Bachani, co-founder of Merlin Real Estate, highlighted the significance of this shift, noting that tenants in older properties often pay rents comparable to modern buildings with superior amenities.
"This new model ensures rents are reflective of specific buildings and units, preventing arbitrary pricing,"
he said.
Firas Al Msaddi, CEO of fäm Properties, emphasized the current index’s limitations, which fail to account for critical factors like unit size, views, and unique amenities.
“The Smart Rental Index promises to bridge these gaps, offering precise evaluations and distinguishing between new and renewed rental contracts—ensuring fairness for both landlords and tenants,”
he explained.
Danish Sharif, CEO of Blanco Thornton Properties, added that the index’s real-time data capabilities could extend beyond pricing, offering tools like legal checks and agreement reviews to minimize disputes.
"An AI-powered platform tracking market trends could help landlords and tenants make informed decisions,"
he said.
Anmoll D Shroff, founder of Elton Real Estate Development, praised the initiative for its potential to empower tenants with comparative data and heat maps showing rental trends.
“This will stabilize rental prices and reduce disputes, creating a balanced and sustainable ecosystem,”
he noted.
The Smart Rental Index is poised to redefine Dubai’s rental landscape, benefiting landlords, tenants, and investors alike.
News Source: Khaleej Times
