The Dubai Land Department has introduced the Smart Rental Index 2025, marking a significant milestone in the regulation and development of Dubai’s real estate sector.
This index represents a comprehensive system that integrates the latest technologies and real estate expertise, aiming to provide exceptional services that meet the needs of all stakeholders in the real estate market.
It further enhances transparency and fairness in determining rental values, aligning with Dubai’s Digital Strategy and the Dubai Real Estate Sector Strategy 2033 objectives.
The index relies on an advanced building classification system that considers all technical and service-related aspects of properties. Each building is evaluated based on a comprehensive set of criteria, including 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. This mechanism aims to ensure accurate and fair determination of rental values, reflecting each property’s true quality and advantages.
Majid Al Marri, CEO of the Real Estate Registration Sector at Dubai Land Department, emphasized that the launch of the ‘Smart Rental Index’ marks a pivotal transformation in the regulation and development of the real estate sector in Dubai. This initiative enhances transparency, builds trust, and provides stakeholders with a balanced and sustainable environment.
“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. In 2024, the total number of registered rental contracts exceeded 900,000, reflecting an 8 percent 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,” Al Marri added.
The index is based on unified and clear criteria to ensure transparency in the property valuation process. A precise calculation mechanism was developed that considers all factors influencing rental value, including the real estate market condition; it is characterized by its flexibility due to the continuous updating of standards to keep pace with market changes, ensuring that the expectations of both landlords and tenants are met.
