Smart Rental Index 2025: All you need to know

Last updated: 8 months ago

Dubai Land Department (DLD) recently launched the Smart Rental Index, an advanced tool designed to provide accurate and transparent rental valuations across the emirate. Covering all residential areas, including districts, special development zones, and free zones, the index introduces several new features, aiming to benefit tenants, landlords, and investors.

Key Features of the Smart Rental Index:

Expanded Criteria:

The index now includes:

Star Rating System: Properties are rated from one to five stars based on quality, amenities, maintenance, and facility management.
Data on Old and New Buildings: Comprehensive coverage of building types.
Average Rent Insights: Detailed analysis of rental trends by area and building.

AI-Powered Evaluation:

Using artificial intelligence, the index evaluates properties by considering both technical and service-related aspects. It ensures accurate rental valuations that reflect the true quality of each property.

Everything You Need to Know:

Access:

Tenants and landlords can access the Smart Rental Index via the Dubai Land Department’s website.

Purpose:

The initiative aims to ensure fair and accurate rental valuations, offering a clear understanding of market trends for tenants, landlords, and investors.

Scope:

The index exclusively covers residential buildings, evaluating all technical and service-related aspects, including:

Structural and technical features.
Quality of finishes and maintenance.
Location and spatial value.
Availability of services like cleanliness, parking, and management.

Exclusions:

The index does not cover commercial buildings.

Implications of the Smart Rental Index:

Rent Adjustments:

Buildings with higher star ratings may experience rent hikes.
The percentage of rent increase is regulated by Decree No. (34) of 2013, starting at 0% for properties less than 10% below average market rent and going up to 20% for properties exceeding the average by more than 40%.

For Older Buildings:

Owners can increase rents if they renovate and improve the building’s rating.

Updates:

Unlike the previous quarterly or annual updates, the Smart Rental Index is updated daily, ensuring it reflects the latest market trends.

Foreign Investments:

Enhanced transparency and clarity in rental data are expected to attract more local and foreign investors, facilitating new projects and property purchases in Dubai.