It aims to ‘foster trust and transparency’ in Dubai’s rental sector…

Back in December 2024, the Dubai Land Department (DLD) announced the launch of a revolutionary new Dubai Smart Rental Index. Launching this January, it’s set to provide more transparency for investors, landlords and tenants.

As per Gulf News, it’s been designed to “empower stakeholders with clear, accessible information, fostering trust and balanced real estate transactions.”

But what exactly does that mean?

Well the DLD has created an advanced building classification system, which will rate buildings from one to five stars. The Index covers all areas of Dubai, and the star rating is decided by a comprehensive set of more than 60 criteria, according to The National. These include technical and structural characteristics, the quality of finishes and maintenance, the building’s strategic location and its spatial value, as well as the level of services and facilities available, such as maintenance, cleanliness, and parking management.

Based on these factors and the building rating, it’s expected that a more transparent and linear market value for properties will be achieved across the city’s rental sector. Should a landlord wish to increase their rating, they will need to upgrade or renovate.

What makes this system different from the current one is that the Smart Rental Index can be updated at any time, rather than just annually, so it can keep up with the fast-paced changes in the market.

The Index applies just to residential properties for now, with commercial units set to be added later.

Will rents go up?

Rental increases will still be possible in line with the Smart Rental Index, and provided they adhere to the system outlined in accordance with Decree No. (34) of 2013.

Depending on the annual rent measured against the market value, rent increases range from 0 to 20 per cent depending on how far below market value a tenant is paying.

Using state-of-the-art technology to further enhance the DLD‘s extensive real estate expertise, the Smart Rental Index is a new service that looks to meet the needs of all stakeholders.

Real estate trends in 2025

The Smart Rental Index launch comes ahead of a year of forecasted continued growth in Dubai’s real estate sector. Industry experts expect surges of up to 13 per cent in the long-term rental segment, as per Arabian Business.

Where can I find the Smart Rental Index?

You can access it now here via the DLD website.

Lead image: Getty