The Dubai Land Department (DLD) has announced that landlords must notify tenants 90 days before the end of the rental agreement process. This must be validated by the new Smart Rental Index.
The Smart Rental Index determines rent adjustments by analyzing the contract value of a building, analyzing space reductions, and construction classifications.
If the landlord does not submit a 90-day termination, the increase cannot be implemented regardless of the index results, the Dubai Media Office (DMO) said in a statement.
If the landlord issues a termination and receives approval within the framework of the previous index, the update date determines which index will apply.
Agreements renewed before 2025 will follow the previous index, but those renewed in 2025 will need to comply with the new system.
Dubai Land Department Introduces AI-Driven System for Controlling Rental Prices
DLD reported that the new rent index contributed to checking rental prices in Dubai and reducing inflation in 2025.
The system uses artificial intelligence to assess rental prices for residential areas such as districts, special development zones, and free zones.
“The Smart Rent Index helps curb inflation and enables stakeholders to make informed investment decisions based on reliable data,” Majid Al Marri, CEO of the Real Estate Registration Sector at Dubai Land Department said.
DLD reports that in 2024 the Dubai rental market recorded over 900,000 rental contracts, showing an 8% increase compared to 2023.
The division plans to update its index periodically to reflect changes in the market.
