Dubai’s real estate market is still evolving. The DLD launched its innovative rental index on 1 January 2025. This contemporary device replaces the Rera rental calculator as an enhanced tool offering dynamic data updates for better features, transparency, and accuracy of the rental value estimate. Tenants receive more, opening a new opportunity for landlords.
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Key Features of the Smart Rental Index
The innovative rental index is AI-based and aims to provide relevant, timely, and data-accurate rental prices. It should give each tenant and landlord values, and real-time updates offer a much faster reaction to market changes.
The index focuses on three critical components:
- Building ratings, which grade facilities and quality from one to five stars.
- Old and new rental contract values are collected through the Ejari system.
- Where the property is situated is to provide for regional differences.
Currently, only buildings are awarded a rating. Still, villas and commercial buildings will be included later in the year to create an all-encompassing index of property types.
Explore The Optimus, where transparency meets expertise in Dubai’s real estate, for reliable information about building ratings and property management.
Legal Framework for Rental Increases
Under section 26 of Decree 43 of 2013, a landlord can increase rent by a maximum of 20% yearly. However, the innovative rental index now incorporates building ratings to determine permissible rental increases. This allows tenants to pay reasonable rent charges based on the properties’’ attributes.
For instance, a tenant living in the Al Wasl area recently saw his rent increase by a staggering 20%, from AED 107,000 to AED 128,400. Using the innovative rental index, tenants can validate such increases against market benchmarks, ensuring landlords adhere to legal and market standards.
To avoid confusion over rental increases, consult The Optimus for tailored advice on navigating Dubai’s evolving rental system.
Conclusion
The innovative rental index is revolutionising the Dubai real estate sector by prioritising real-time data updates, building ratings, and tenant-friendly practices. Given its central theme of promoting transparency and accuracy enhancements, the strategy places Dubai at the forefront of real estate advancement worldwide. Consult The Optimus for professional assistance with rental relations and property rating.
Frequently Ask Questions
Q: What is the Smart Rental Index?
A: A new application launched recently uses the Dubai Land Department’s technology. It aims to provide new rental values in real time to enhance fairness.
Q: How does the Smart Rental Index benefit tenants?
A: It ensures that rental values reflect the quality of the property and uses other statistical methods to ensure that landlords do not increase their rent charges unnecessarily.
Q: How can I access the Smart Rental Index?
A: The Dubai Land Department’s website has it. This will assist both the tenant and the landlord in checking the correct market value of the rent.
