Dubai's Smart Rental Index 2025, launched by the Dubai Land Department (DLD), is set to transform how rental prices are set and regulated across the emirate — bringing AI-driven transparency to a market that recorded over 900,000 rental contracts in 2024 alone.
What Is the Dubai Smart Rental Index 2025?
The Smart Rental Index replaces the previous RERA Rent Calculator as of January 2025. It uses artificial intelligence to assess each building's fair rental value based on four core factors: technical and structural condition, quality of finishes and maintenance, location and spatial value, and available amenities and services such as parking and cleanliness management.
The system aligns with Dubai's Digital Strategy and the Real Estate Sector Strategy 2033, delivering standardised, data-driven rental assessments across all residential areas — including special development zones and free zones.
How Rental Increases Are Calculated Under the New Index
Under the Smart Rental Index, rental increases remain governed by Decree No. (34) of 2013, but the index now provides the official market benchmark:
- 0–10% below market average: No increase permitted - 10–20% below market average: Up to 5% increase - 20–30% below market average: Up to 10% increase - 30–40% below market average: Up to 15% increase - More than 40% below market average: Up to 20% increase
The index covers all residential areas citywide, protecting tenants from arbitrary hikes while giving landlords clear, objective benchmarks for rent reviews.
Market Transparency and Stakeholder Tools
Majid Al Marri, CEO of the Real Estate Registration Sector at DLD, described the initiative as a milestone for the sector. "This initiative will increase transparency, trust and position Dubai as the best place to invest," he said.
The Dubai REST App integrates the new index, enabling digital rental contracts and a Model Tenant Classification System that factors in tenant credit scores. The 900,000-plus rental contracts registered in 2024 — an 8% increase year-on-year — reflect growing confidence in Dubai's property sector, a trend DLD expects the Smart Rental Index to accelerate.
Future expansions are planned to cover commercial and industrial properties, alongside enhanced customer support, staff training, and broader technological integration.
