Dubai Land Department launched the Smart Rental Index 2025, marking a transformative milestone in regulating and developing Dubai’s real estate sector.
This index represents a comprehensive system that integrates the latest technologies and real estate expertise, aiming to provide exceptional services that meet the needs of all stakeholders in the real estate market. It further enhances transparency and fairness in determining rental values, aligning with Dubai’s Digital Strategy and the Dubai Real Estate Sector Strategy 2033 objectives.
The index relies on an advanced building classification system that considers all technical and service-related aspects of properties. Each building is evaluated based on a comprehensive set of criteria, including technical and structural characteristics, the quality of finishes and maintenance, the building’s strategic location and its spatial value, as well as the level of services and facilities available, such as maintenance, cleanliness, and parking management. This mechanism aims to ensure accurate and fair determination of rental values, reflecting each property’s true quality and advantages.
The index is based on unified and clear criteria to ensure transparency in the property valuation process. A precise calculation mechanism was developed that considers all factors influencing rental value, including the real estate market condition; it is characterised by its flexibility due to the continuous updating of standards to keep pace with market changes, ensuring that the expectations of both landlords and tenants are met.
Earlier, Dubai Land Department launched a series of initiatives to enhance the sector’s efficiency and simplify procedures. These include interactive rental contracts that allow landlords and tenants to register, renew, and cancel contracts seamlessly through the Dubai REST app, as well as interactive property management contracts that enable property owners and management companies to register and modify contracts directly via the smart app, eliminating the need for traditional procedures.
Additionally, DLD introduced the ‘Model Tenant Classification’ system, an innovative tool to classify tenants’ credit ratings and obtain credit reports through the Ejari system and the smart app for interested parties.
In line with its commitment to transparency and fairness, Dubai Land Department applies a clear system for rental increases through the index, in accordance with Decree No. (34) of 2013. The increase percentages are determined based on the difference between the current rental value and the average market rent. Rental increases start at 0 percent for rents that are less than 10 percent below the average market rent and can reach up to 20 percent for rents that exceed the average by more than 40 percent. This system aims to ensure a fair balance, protecting the rights of both landlords and tenants while contributing to the market’s stability.
The index covers all residential areas in Dubai, including key areas, special development zones, and free zones, ensuring the standardisation
