Dubai Land Department (DLD) has introduced the Smart Rental Index 2025, a comprehensive system designed to regulate rental valuations across the emirate’s residential areas, including key districts, special development zones and free zones. The index, which relies on advanced building classification and artificial intelligence technologies, aims to enhance transparency, ensure fair valuations, and align with Dubai’s broader digital and real estate strategies.
The index employs a unified set of criteria for evaluating rental properties, factoring in technical and structural characteristics, quality of finishes and maintenance, spatial value, and available facilities such as parking and cleanliness. This system ensures that rental valuations reflect the true value of each property and align with prevailing market conditions.
During a press conference at DLD headquarters, Majid Al Marri, CEO of the Real Estate Registration Sector at DLD, said: “This index relies on artificial intelligence technologies and a building classification system and provides fair and accurate rental valuations, strengthening Dubai’s position as a global investment destination.”
Transparent rental processes and standards
The Smart Rental Index uses a calculation mechanism updated regularly to reflect market changes. Rental increases are determined based on Decree No. (34) of 2013, with rates ranging from 0% for rents less than 10% below the average market rent to a maximum of 20% for rents exceeding the market average by more than 40%. This approach aims to balance the interests of landlords and tenants while stabilising the market.
DLD has rolled out several initiatives to streamline real estate transactions. These include interactive rental contracts accessible via the Dubai REST app for registering, renewing, and cancelling agreements and a Model Tenant Classification system that evaluates tenants’ credit ratings through the Ejari system.
The department plans to expand the index to include commercial and industrial properties and introduce new services, including training programs, customer service enhancements, and additional technical support.
The Smart Rental Index is part of DLD’s strategy to standardise valuation and pricing criteria across Dubai. Future enhancements will include broader sectoral coverage and advanced communication channels to address stakeholder needs.