The Dubai Land Department announced the launch of the Smart Rent Index for 2025, representing a significant leap in the regulation and development of the emirate’s real estate sector.
The department emphasized that this index is an integrated system combining the latest technologies and real estate expertise. It aims to provide exceptional services that meet the needs of all stakeholders in the real estate market while enhancing transparency and fairness in determining rental values. This aligns with the objectives of the “Dubai Digital Strategy” and the “Dubai Real Estate Strategy 2033.“
Advanced Classification System
During a press conference held at its headquarters yesterday, attended by several strategic partners, representatives of government entities, real estate companies in Dubai, executives, and department managers, the Dubai Land Department revealed that the index relies on an advanced building classification system. Smart Rent Index considers all technical and service aspects of properties, evaluating each building based on a comprehensive set of criteria.
These criteria include technical and structural features, quality of finishes and maintenance, the building’s strategic location and spatial value, and the level of available services and facilities, such as maintenance, cleanliness, and parking management.
The Dubai Land Department emphasized that this mechanism aims to ensure precise and fair determination of rental values, reflecting the actual quality and advantages of each property.
A Transformational Leap
Majid Al-Marri, the Executive Director of the Real Estate Registration Sector at Dubai Land Department, stated during the press conference that the launch of the “Smart Rent Index” represents a transformational leap in organizing Dubai’s real estate sector. He noted that it contributes to enhancing transparency, building trust, and providing a balanced and sustainable environment for all stakeholders.
He added: “This index leverages artificial intelligence technologies, a building classification system, and fair and accurate rent assessments, further solidifying Dubai’s position as a global investment destination.”
He added: “In 2024, the number of registered rental contracts exceeded 900,000, with an 8% growth rate compared to the previous year. This reflects the growing confidence in Dubai’s real estate market, enabling all parties involved in rental agreements to make informed decisions that meet the aspirations of all stakeholders and enhance the long-term sustainability of the market.”
Standardized Criteria
The index is based on clear and standardized criteria to ensure transparency in the property evaluation process. A precise calculation mechanism has been developed, taking into account all factors influencing rental values, including the state of the real estate market.
Smart Rent Index is distinguished by its flexibility, thanks to the continuous updating of criteria to keep pace with market changes and to meet the expectations of both landlords and tenants alike.
Transparency and Fairness
As part of its commitment to achieving transparency and fairness, the Dubai Land Department applies a clear rent increase system through the index in accordance with Decree No. (34) of 2013. Rent increase rates are determined based on the difference between the current rental value and the average market rental rate.
The increases range from 0% for rents less than 10% below the market average to a maximum of 20% for rents more than 40% below the average. This system aims to establish a fair balance that protects the rights of both landlords and tenants while contributing to market stability.
Future Development
The Dubai Land Department highlighted its ongoing efforts to continuously enhance the Smart Rent Index, aiming to include more real estate sectors such as commercial and industrial indicators. Additionally, new services will be introduced to improve user experience and build greater confidence in the market.
Future initiatives include offering training programs, providing specialized customer service and continuous technical support, as well as opening multiple communication channels to meet all beneficiary needs.
The department invited all interested parties and those seeking more information about the index to reach out through its official channels and a dedicated team to provide support and address all relevant inquiries.
A Package of Initiatives
Previously, the Dubai Land Department launched a series of initiatives to enhance the sector’s efficiency and simplify procedures. These include interactive rental contracts that enable landlords and tenants to easily register, renew, and cancel contracts through the “Dubai REST” app.
Additionally, interactive property management contracts allow landlords and property management companies to register and modify contracts directly via the smart app, eliminating the need for traditional processes.
The initiatives also include the “Model Tenant Classification,” an innovative system for evaluating tenants’ creditworthiness, providing credit reports through the “Ejari” system, and offering a smart app for interested users to manage their transactions seamlessly.
All Residential Areas
The index covers all residential areas in Dubai, including key areas, special development zones, and free zones, ensuring standardized evaluation and pricing criteria throughout the emirate.
It provides landlords with a reliable tool for property evaluation and determining rent increases in a transparent and well-considered manner, while allowing tenants to ensure transparency and protection from unjustified rent hikes, thus enhancing their confidence in the real estate market.
