The DLD reported that the new rental index has helped control rental prices and reduce inflation across Dubai in 2025.
Dubai Land Department Introduces Smart Rental Index for Rent Adjustments
The Dubai Land Department (DLD) has announced new regulations requiring landlords to notify tenants at least 90 days before their lease expires if they intend to increase rent. The adjustment must also be validated by the newly introduced Smart Rental Index.
This Smart Rental Index determines rent changes by analyzing contract values within buildings, average prices in specific areas, and the classification of buildings.
If landlords fail to provide the mandatory 90-day notice, they will be unable to impose any rent increase, even if the index allows for one, according to a statement by the Dubai Media Office (DMO).
For cases where landlords have already provided notice and received approval under the previous rental index, the applicable system will depend on the renewal date. Contracts renewed before 2025 will follow the old index, while those renewed in 2025 must comply with the new Smart Rental Index.
The DLD has reported that the introduction of this system has played a key role in stabilizing rental prices and controlling inflation across Dubai in 2025.
The index utilizes artificial intelligence to assess rental prices across various residential areas, including special development zones and free zones, ensuring a fair and data-driven approach to rent adjustments.
Majid Al Marri, CEO of the Real Estate Registration Sector at Dubai Land Department, stated: “The Smart Rental Index helps curb inflation and empowers stakeholders to make informed investment decisions based on reliable data.”
Dubai’s rental market recorded over 900,000 lease contracts in 2024, reflecting an 8 percent increase from the previous year. The DLD has confirmed that the rental index will be regularly updated to reflect market trends and maintain transparency.
