Dubai Unveils Smart Rental Index 2025 to Enhance Transparency in Property Rentals

The Smart Rental Index 2025 will be launched by Dubai Land Department to transform the Dubai real estate market into the transparent and efficient industry. This innovative system prescribes a comprehensive building type classification system to define the property’s fair rental value to reflect the city’s Digital Strategy, and the Real Estate Sector Strategy 2033.

The Smart Rental Index uses innovative resources, like AI to analyse the properties by its technical performance, improvement condition and quality, location of the property, and the amenities on offer. The index ensures that the tenants are charged reasonable prices for the rentals, simultaneously ensuring that landlords are well equipped with sets of standard to use in the determination of rental hikes.

When implemented well, the drivers of transparency outlined above serve to increase and advance market growth:

Majid Al Marri, the CEO of the Real Estate Registration Sector at DLD, highlighted the unprecedented role in the index. ‘This initiative will increase transparency, trust and position Dubai as the best place to invest,’ he said. Having registered over 900k rental contracts in 2024, an 8% rise from the prior year, it can be seen that the move is indicative of the rising conviction in the Dubai property market.

With the new structure, Rental increases, will have to observe the rule as follows decreed by DO No. (34) of 2013. Regressions vary between 0% of rents that are less than 10% of market average, to a maximum of 20% for rents in excess of the market average of over 40%. This index applies to all residential areas such as special development zones and free zones and protects tenants from unfair hike while giving landlords a means ofevaluate the tenant fairly.

Market Innovation for Stakeholders

Some of the smart solutions include regulating services availed through the Dubai REST App which facilitates interactive rental contracts and a Model Tenant Classification System which reviews Tenants credit score. Possible future expansions involve elaboration of the index to such sectors as commercial and industrial, as well as customers relations enhancement, training for personnel, and vast technological support.