Dubai, 2nd January, 2025 – The Dubai Land Department (DLD) has officially launched the Smart Rental Index 2025, a groundbreaking initiative designed to revolutionize the regulation and development of Dubai’s real estate market.
This innovative index introduces a state-of-the-art system that incorporates advanced technologies and industry expertise, delivering exceptional services tailored to the needs of all real estate market participants. It aims to elevate transparency and fairness in rental value determinations while aligning with Dubai’s broader Digital Strategy and the objectives outlined in the Dubai Real Estate Sector Strategy 2033.
The announcement took place during a press conference held at DLD’s headquarters. The event saw the participation of strategic partners, government representatives, real estate professionals, and senior leaders from the Dubai Land Department, including its CEOs and directors.
The Smart Rental Index leverages a sophisticated building classification system that evaluates properties based on technical and service-related attributes. This comprehensive assessment covers various aspects such as structural features, quality of maintenance and finishes, the strategic location of the building, and the availability of facilities like cleanliness, parking, and maintenance services. By doing so, the system ensures accurate and equitable rental valuations that genuinely reflect the unique qualities and benefits of each property.
Majid Al Marri, CEO of the Real Estate Registration Sector at DLD, emphasized the transformative potential of the Smart Rental Index during the conference. He described it as a pivotal step in advancing Dubai’s real estate sector, fostering trust, and providing a sustainable and balanced environment for all stakeholders.
“This index is powered by artificial intelligence and a robust classification system, enabling precise and fair rental evaluations. It bolsters Dubai’s position as a top global destination for investment,” Al Marri remarked.
He further revealed that in 2024, the total number of registered rental contracts in Dubai surpassed 900,000, marking an 8% growth compared to the previous year. This growth signifies the increasing confidence in Dubai’s real estate market and equips all parties in rental agreements with the tools to make informed decisions, ultimately promoting market sustainability.
The index operates on transparent and unified criteria for property evaluation. A meticulous calculation method factors in market conditions, offering flexibility through continuous updates to adapt to evolving market dynamics. This ensures the system meets the expectations of landlords and tenants alike.
Khalid Al Shaibani, Director of the Rental Affairs Department at DLD, delivered an insightful presentation on the index. He outlined its innovative features and its role in fostering transparency, boosting sector development, and establishing a sustainable environment for all stakeholders involved.
In recent years, DLD has implemented various initiatives to enhance the efficiency of Dubai’s real estate sector. These include interactive rental contracts that enable landlords and tenants to manage agreements via the Dubai REST app and property management contracts that allow for seamless registration and modifications through smart technologies.
Additionally, DLD introduced the ‘Model Tenant Classification’ system, which allows for tenant credit rating assessments and access to credit reports via the Ejari system and smart app, thereby simplifying processes and enhancing transparency.
Underpinned by Decree No. (34) of 2013, the Smart Rental Index also governs rental increases based on the gap between current rental values and average market rents. The system ensures that increases are fair and balanced, starting at 0% for rents within 10% of the average market rent and capping at 20% for those exceeding the average by more than 40%.
This comprehensive index encompasses all residential areas in Dubai, including special development and free zones, standardizing property valuation and pricing criteria across the emirate. It provides landlords with reliable tools for property valuation while protecting tenants from unjustified rent hikes, enhancing confidence and stability in Dubai’s real estate market.
