The Dubai Land Department (DLD) has introduced the Smart Rent Index, a groundbreaking initiative aimed at stabilizing rental prices and mitigating inflation in the city for 2025. By regulating rent increases, the index has played a pivotal role in maintaining a balanced cost of living across Dubai.
Utilizing artificial intelligence, the Smart Rent Index provides standardized, accurate rental price assessments that encompass all residential areas, including key districts, special development zones, and free zones. This innovative approach enhances transparency, promotes fairness, and bolsters confidence in Dubai’s real estate market.
The index calculates rental adjustments based on multiple factors, such as rental contract values, average rental prices in the area, and building classifications. A clear framework for rent increases has been established, which includes a 90-day notification period from landlords before contract expiration. Rent increases will only be applied if the Smart Rent Index confirms eligibility based on the property's data.
If the landlord fails to notify the tenant in time, the increase will not be enforced. Additionally, a dual-index mechanism is in place: contracts renewed before 2025 will follow the previous index, while those renewed in 2025 will adhere to the updated index.
Majid Al Marri, CEO of the Real Estate Registration Sector at DLD, highlighted that the Smart Rent Index promotes transparency, curbs inflation, and empowers stakeholders to make informed decisions. He noted that the system is aligned with Dubai’s commitment to digital transformation and market fairness, with over 900,000 lease contracts registered in 2024—an 8% increase compared to the previous year.
DLD will continue to adapt the Smart Rent Index to ensure it reflects the evolving rental market, supporting fair practices for both landlords and tenants.
News Source: Dubai Media Office
