Real Estate

Comprehensive Tool Enhances Transparency and Standardization in Dubai's Real Estate Sector

The Dubai Land Department (DLD) has unveiled the Smart Rental Index 2025, a groundbreaking initiative aimed at regulating and advancing the emirate's real estate market. Leveraging cutting-edge technologies, this transformative tool is designed to ensure fair, transparent, and accurate rental valuations across Dubai's residential areas, including key districts, free zones, and special development zones.

A Milestone in Rental Market Regulation

The index, powered by artificial intelligence and an advanced building classification system, establishes standardized valuation criteria to foster trust among stakeholders. This aligns with Dubai’s Digital Strategy and the Dubai Real Estate Sector Strategy 2033, reinforcing Dubai’s position as a global investment hub.

Majid Al Marri, CEO of the Real Estate Registration Sector at DLD, emphasized:
“This index marks a pivotal transformation in real estate regulation. It enhances transparency, strengthens trust, and supports a sustainable environment for stakeholders. The system relies on AI technologies to provide fair and accurate rental valuations, solidifying Dubai’s position as a premier investment destination.”

Key Features of the Smart Rental Index

1. Advanced Building Classification System:

   • Evaluates properties based on structural and technical features, finishes, maintenance quality, location, and available facilities.
   • Ensures that rental values reflect the true quality and advantages of each property.

2. Standardized Criteria:

   • Incorporates real estate market conditions and updates standards to match market changes.
   • Balances expectations of landlords and tenants for greater market stability.

3. Enhanced Transparency in Rental Increases:

   • Adheres to Decree No. (34) of 2013 to regulate rental hikes based on differences between current and market rents.
   • Caps rental increases at 20% for properties significantly above market rates, protecting tenant interests.

2024 Rental Market Insights

• Over 900,000 rental contracts were registered in 2024, reflecting an 8% growth compared to 2023.
• The surge highlights increasing confidence in Dubai's real estate market, driven by transparent valuation systems and innovative digital services.

Supporting Initiatives

The DLD has introduced several initiatives to simplify processes and enhance market efficiency:

• Dubai REST App: Enables seamless contract registration, renewal, and cancellation.
• Model Tenant Classification System: Allows stakeholders to access tenant credit ratings and reports via the Ejari system.
• Interactive Property Management Contracts: Streamlines property management through digital platforms.

Future Development Plans

The DLD aims to expand the index to cover commercial and industrial real estate sectors, introduce specialized training programs, and provide robust customer support services. Plans also include implementing new communication channels to address the evolving needs of users.

Khalid Al Shaibani, Director of the Rental Affairs Department, stated:
“The innovative Smart Rental Index enhances transparency and fosters a balanced environment, contributing to sustainable development in the real estate sector.”

Enhancing Market Stability and Investor Confidence

The Smart Rental Index 2025 is set to play a vital role in stabilizing Dubai's rental market. By protecting tenants from unjustified rent hikes and offering landlords a reliable valuation tool, it promotes a fair and balanced real estate ecosystem.

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