The “Smart Rental Index,” which encompasses all residential regions in the emirate, including districts, special development zones, and free zones, was released by the Dubai Land Department Thursday.
The star rating system, information on both new and old buildings, and the average rent for the building and the neighborhood have all been added to the new rental index.
The index takes into account all technical and service-related characteristics of properties and is based on artificial intelligence (AI). Residential buildings in Dubai are rated from one to five stars based on a variety of criteria, including facilities management, amenities, quality, and maintenance.
What you need to know about the Smart Rental Index is as follows:
How is it accessible?
The rental index is available on the Dubai Land Department’s website for both landlords and tenants.
For what reason was the Smart Rental Index launched?
Its goal is to give investors, landlords, and tenants fair and accurate rental valuations so that all three parties have a better understanding of the situation.
What is covered by it?
All residential areas in Dubai are included in the index, including free zones, special development zones, and important districts, guaranteeing uniform pricing and valuation standards.
Which building-related topics are included in the index?
The index uses a sophisticated building classification system that takes into account all of a property’s technical and service-related features. Technical and structural features, the caliber of finishes and upkeep, the building’s strategic location and spatial value, and the degree of services and amenities offered, like upkeep, cleanliness, and parking management, are just a few of the many factors that go into evaluating each building. The goal of this system is to guarantee that rental values are determined fairly and accurately, taking into account the actual benefits and qualities of each property.
Does the index also include commercial buildings?
No.
Will the introduction of the Smart Rental Index result in higher rents?
Yes, a higher rating for your building will result in greater rent.
What is the maximum increase in rent?
As per Decree No. (34) of 2013, rental hikes are implemented. The gap between the present rental value and the average market rent is used to calculate the increase percentages. For rentals that are less than 10% below the average market rent, rental increases begin at 0% and can go up to 20% for rates that are more than 40% over the average.
Can owners of older buildings raise rent as well?
As long as they renovate and update the building, it will receive a higher rating.
Is it possible to refresh the new index frequently?
Indeed. In contrast to the previous index, which was updated quarterly, semi-annually, or annually, DLD claims that the current index may be updated daily to reflect the most recent statistics and rental patterns in Dubai.
Will additional foreign investment be drawn to the Smart Rental Index?
Indeed. Local and international investors will find it easier to start projects and buy real estate if rental revenue is more transparent and clear.