Dubai Land Department Unveils Smart Rental Index 2025

by News Desk 6 months ago RealEstate Dubai Land Department

The index covers all residential areas in Dubai, including key districts, special development zones, and free zones, ensuring standardised valuation.

The Dubai Land Department (DLD) has unveiled the Smart Rental Index 2025, marking a significant step in the evolution of Dubai's real estate sector. This new index integrates cutting-edge technologies and expert real estate insights to provide a comprehensive system designed to cater to the needs of all market stakeholders. It aims to improve transparency and fairness in setting rental values, aligning with both Dubai’s Digital Strategy and the Dubai Real Estate Sector Strategy 2033.

The announcement took place during a press conference at the DLD headquarters, attended by key strategic partners, government representatives, and executives from real estate companies in Dubai.

Building Classification System for Accurate Valuation

A cornerstone of the Smart Rental Index is its advanced building classification system. This system evaluates properties based on a wide range of factors, including technical and structural quality, maintenance standards, finishes, location, and available services such as cleanliness, parking management, and overall upkeep. By using this system, the index ensures that rental values reflect the true quality and value of each property.

The valuation process is underpinned by clear and unified criteria, ensuring transparency. The mechanism also adapts to market changes, with continuous updates to reflect current conditions. This flexibility guarantees that the needs and expectations of both landlords and tenants are met.

Presentation of the New Rental Index

During the press conference, Khalid Al Shaibani, Director of the Rental Affairs Department at DLD, delivered a detailed presentation on the new rental index. He emphasized the index’s role in enhancing transparency and improving the real estate sector, aiming to create a balanced and sustainable environment for all stakeholders involved.

During the conference, Majid Al Marri, CEO of the Real Estate Registration Sector at Dubai Land Department, emphasised that the launch of the ‘Smart Rental Index’ marks a pivotal transformation in the regulation and development of the real estate sector in Dubai. He highlighted that this initiative enhances transparency, builds trust, and provides stakeholders with a balanced and sustainable environment. He stated: “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.”

He added: “In 2024, the total number of registered rental contracts exceeded 900,000, reflecting an 8% growth compared to the previous year. This increase reflects the growing confidence in the Dubai real estate market, enabling all parties in rental agreements to make well-informed, ultimately achieving the aspirations of all parties and enhancing the long-term sustainability of the market.”

Initiatives to Improve Real Estate Efficiency

In addition to the Smart Rental Index, the DLD has launched several initiatives to streamline the real estate sector. These include interactive rental contracts, which allow landlords and tenants to easily register, renew, and cancel contracts through the Dubai REST app. Another initiative is the interactive property management contracts, which enable property owners and management companies to handle contracts directly via the app, eliminating traditional paperwork. Furthermore, DLD introduced the ‘Model Tenant Classification’ system, a tool that provides credit ratings and reports through the Ejari system and the smart app.

Ensuring Fairness in Rent Increases

As part of its commitment to fairness, the DLD has established a clear system for determining rent increases based on the Smart Rental Index. In line with Decree No. (34) of 2013, rental increases are calculated by comparing current rental values with average market rents. Rent increases can range from 0% for rents below 10% of the market average, up to 20% for rents that exceed the average by more than 40%. This system aims to maintain a fair balance, protecting both landlords and tenants and contributing to the overall stability of the market.

The index covers all residential areas in Dubai, including key locations, special development zones, and free zones. This ensures consistent evaluation and pricing across the emirate, giving landlords a reliable tool for property valuation and rent adjustments, while offering tenants protection from unjustified hikes.

Commitment to Continuous Development

The Dubai Land Department is dedicated to the ongoing development of the Smart Rental Index. Future plans include expanding the index to cover additional real estate sectors, such as commercial and industrial properties. DLD also plans to introduce new services to enhance the user experience and foster trust in the market. These will include training programs, specialized customer service, and continuous technical support, along with various communication channels to cater to the diverse needs of all beneficiaries.

Login for Writing a comment

Comments

Related Post