Dubai introduces Smart Rental Index 2025 for transparent rental pricing
Dubai introduces Smart Rental Index 2025 for transparent rental pricing
Dubai Land Department has unveiled Smart Rental Index 2025, an innovative system aimed at increasing transparency and fairness in determining rents using artificial intelligence and building classification, Arabian Business reported.
Dubai Land Department (DLD) has officially launched Smart Rental Index 2025, an advanced digital system designed to calculate rents accurately and fairly. The new index is based on a detailed building classification system that takes into account factors such as technical condition, quality of finishes, location, infrastructure and services provided.
The system allows buildings to be assigned a “star rating”, which determines the level of the rental rate. This means that the rent will depend not only on the neighborhood, but also on the condition of a particular building. The owner of an old building in an upscale neighborhood will not be able to set the same rates as in a new and well-maintained complex.
Majid Al Marri, General Manager of DLD's Real Estate Registration Sector, said, “The introduction of Smart Rental Index marks a new stage in the development of Dubai's real estate market. The system increases transparency, reduces conflicts and creates trust between landlords and tenants.”
The index is backed by artificial intelligence technology to ensure high accuracy in data analysis and predictions. More than 900,000 rental contracts have been recorded in 2024 - an 8% increase on the previous year, demonstrating confidence in the stability of the market.
The launch of Smart Rental Index 2025 is part of Dubai Land Department's long-term strategy to digitize the real estate market and increase transparency. Previously, tools such as Ejari and Makani have already been introduced to help simplify rental contract registration and improve the accuracy of real estate valuation. The new index is the next step to eliminate inconsistencies in the pricing system.
The implementation of Smart Rental Index 2025 will make life much easier for tenants and landlords. For tenants, it means protection from unreasonable rent increases and confidence in fair pricing. Landlords will have clear criteria to evaluate their properties and a tool to make them more attractive through improvements.
Rohit Bachani, co-founder of Merlin Real Estate, said, “The new rental index ensures that rents reflect the actual quality and condition of the property, rather than neighborhood averages. This will greatly increase confidence in the market and reduce disputes.”
The Smart Rental Index 2025 will be a key tool to bring transparency and fairness to the property rental market in Dubai. The new system will enable tenants and landlords to make informed decisions, reducing conflicts and creating a sustainable and balanced rental ecosystem.
