Dubai
Dubai AFP

The Dubai Land Department on Thursday introduced the Smart Rental Index 2025 to improve and organize Dubai's real estate sector. This new system uses advanced technology and expert knowledge to offer top-notch services that cater to everyone involved in the real estate market.

The Smart Rental Index uses clear and consistent criteria to ensure transparency in property valuation. It relies on a precise calculation method that evaluates various factors affecting rental value, including market conditions.

The index is designed to be flexible, with standards that are regularly updated to adapt to market changes, ensuring the needs of both landlords and tenants are met, WAM reported.

During a conference, Majid Al Marri, CEO of the Real Estate Registration Sector at Dubai Land Department, emphasized that this launch will transform the regulation and development of the real estate sector in Dubai.

He said that the Smart Rental Index uses artificial intelligence and a building classification system to provide fair and accurate rental valuations, reinforcing Dubai's reputation as a global investment hub.

Al Marri also highlighted that in 2024, over 900,000 rental contracts were registered, marking an 8% growth from the previous year. This growth demonstrates increasing trust in Dubai's real estate market, helping all parties in rental agreements make informed decisions and supporting the market's long-term sustainability.

Khalid Al Shaibani, Director of the Rental Affairs Department at Dubai Land Department, gave a detailed presentation on the new index. He emphasized its benefits, particularly in improving transparency and advancing the real estate sector.

The index aims to create a balanced and sustainable environment that benefits all stakeholders involved. Previously, the Dubai Land Department launched several initiatives to improve efficiency and simplify processes in the real estate sector.

These include interactive rental and property management contracts through the Dubai REST app, allowing landlords, tenants, and property managers to register, renew and modify contracts easily.

Furthermore, DLD introduced the "Model Tenant Classification" system, which helps classify tenants' credit ratings and obtain credit reports via Ejari and the smart app. To ensure fairness, the Dubai Land Department also established a clear system for rental increases.

Based on Decree No. (34) of 2013, rent increases are determined by comparing current rental values to average market rent, with increases ranging from 0% to 20%, depending on the difference. This system aims to balance the interests of both landlords and tenants while maintaining market stability.

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