Dubai launches Smart Rental Index 2025
AI and real estate expertise to ensure fairer rental valuations for landlords and tenants
DUBAI: The Dubai Land Department (DLD) has launched the Smart Rental Index 2025, a major milestone aimed at improving the regulation and development of Dubai’s real estate sector.
This new initiative introduces a comprehensive framework that merges cutting-edge artificial intelligence technologies with deep real estate expertise, ensuring fairer and more accurate rental valuations for both landlords and tenants.
The index is aligned with Dubai’s ambitious Digital Strategy and the Dubai Real Estate Sector Strategy 2033, which aims to elevate Dubai as a global leader in property investment. The announcement was made during a press conference at DLD's headquarters, where key government officials, real estate experts, and business leaders gathered to discuss the innovative system.
What is the Smart Rental Index?
The Smart Rental Index is a data-driven tool that assesses rental values based on a range of criteria, including building quality, location, and available services. DLD has developed an advanced building classification system that evaluates properties using factors such as structural characteristics, the quality of finishes, maintenance levels, and even the management of services like cleanliness and parking facilities.
This technological overhaul allows for more accurate property valuations, ensuring that the rental figures reflect the true value of each property, both in terms of its physical quality and its strategic position in Dubai.
DLD’s vision for real estate
During the conference, Majid Al Marri, CEO of the Real Estate Registration Sector at DLD, underscored the importance of the Smart Rental Index in fostering a transparent and sustainable market. "This initiative is critical for creating a balanced environment in which all stakeholders – landlords, tenants, and investors – can operate with confidence," he explained. "By leveraging artificial intelligence, we can offer a fair, real-time analysis of rental values, ensuring that the market remains dynamic and transparent."
Dubai’s rental market
In 2024, the number of registered rental contracts exceeded a staggering 900,000, reflecting an 8% increase from the previous year. This surge in rental agreements highlights the growing confidence in Dubai’s real estate sector. Such growth signals not only a thriving economy but also the effectiveness of DLD’s ongoing efforts to streamline the rental process and enhance market stability.
According to Al Marri, the Smart Rental Index is key to maintaining this upward trajectory. “The index equips all parties in a rental agreement with informed decision-making tools,” he said, adding that it strengthens Dubai’s position as an international real estate investment hub.
A transparent and fair system
In line with the new index, DLD has introduced a clear system for managing rent increases, based on the difference between current rental values and the average market rent. For example, if rents are below the market average, they can remain steady, while rents above average may see increases of up to 20%.
This system is designed to ensure that rent hikes are fair and transparent, benefiting both property owners and tenants. Tenants are protected from exorbitant increases, while landlords have a reliable framework to guide their rental pricing.
Interactive tools & smart contracts
The launch of the Smart Rental Index is part of DLD’s wider strategy to streamline the real estate sector. A number of interactive tools have been introduced, including digital contracts that allow both tenants and landlords to easily register, renew, and cancel rental agreements via the Dubai REST app. These tools significantly reduce the administrative burden and simplify the rental process.
Moreover, DLD has also rolled out the Model Tenant Classification system, an innovative tool that provides landlords with tenant credit ratings and the ability to obtain detailed reports. This system, integrated into the Ejari platform, makes it easier for landlords to assess the financial reliability of tenants.
Coverage and flexibility
The Smart Rental Index currently applies to all residential areas in Dubai, including key zones and free zones. This ensures that all properties, from high-end villas to affordable apartments, are valued according to the same standards. It is this uniformity and transparency that will bolster trust among stakeholders and help maintain a stable rental market.
DLD has emphasised that the index is flexible and will continuously evolve to reflect changes in the market. This adaptability ensures that it remains relevant, whether there’s a surge in demand or an economic downturn.
Future plans and expansion
While the current focus of the Smart Rental Index is on the residential sector, DLD has plans to expand its scope. Future developments will include the addition of commercial and industrial real estate indices, as well as new services aimed at enhancing user experience. DLD also plans to introduce training programmes for industry professionals and will provide ongoing technical support for users of the system.
DLD encourages residents, landlords, and industry stakeholders to stay updated by engaging with its official communication channels for further details on the Smart Rental Index and related services.