Dubai is set to introduce a ‘Smart Rental Index’ in January 2025, as announced by the Dubai Land Department (DLD). This initiative aims to enhance trust, transparency, and confidence among landlords, tenants, and investors while streamlining rental valuation processes across the emirate.
The Smart Rental Index will serve as a benchmark for assessing and calculating rents for both new leases and renewals. It will provide accurate, real-time data to stakeholders, helping reduce disputes and ensuring fair market pricing.
Rental prices in Dubai have experienced a steady upward trend over the past four years, driven by an influx of new residents and investors. Reports from Cushman Wakefield and Core indicate an 18% year-on-year increase in city-wide rents during Q3 2024, marking the 15th consecutive quarter of significant growth. While villa rents rose by 13%, apartment rents saw a sharper increase of 19% during the same period.
The emirate delivered approximately 9,157 residential units in Q3 2024, bringing the total number of new units for the year to 22,900, including both apartments and villas. However, demand continues to outpace supply, driving rental costs higher.
The DLD highlighted that the Smart Rental Index will integrate cutting-edge technology with the department’s real estate expertise, ensuring stakeholders have access to a reliable and transparent rental system.
This launch follows a similar initiative by Abu Dhabi Real Estate Centre (ADREC) in August 2024, where the capital introduced its first Residential Rental Index to provide clarity and stability in rental valuations.
Dubai’s Smart Rental Index is poised to play a crucial role in shaping the emirate’s rental market, fostering sustainable growth and investor confidence while addressing the dynamic needs of its stakeholders.
