The Dubai Land Department announced the launch of the Smart Rental Index for the year 2025, which represents a qualitative shift in the organization and development of the real estate sector in the emirate.
Dubai Land Department confirmed that this index comes as an integrated system that combines the latest technologies and real estate expertise, with the aim of providing a distinguished service that meets the needs of all parties in the real estate market, and enhances transparency and fairness in determining rental values in line with the objectives of the “Dubai Digital Strategy” and the “Dubai Strategy.” For the real estate sector 2033.
Advanced classification system
Dubai Land Department revealed during a press conference held at its headquarters yesterday, in the presence of a number of strategic partners, as well as a group of representatives of government agencies and real estate companies in Dubai and the executive directors and directors of departments in the department, that the index is based on an advanced classification system for buildings that takes into account all Technical and service aspects of real estate, as each building is evaluated based on a comprehensive set of standards that include technical and construction characteristics, quality of finishes and maintenance, the strategic location of the building, its spatial value, and the level of services. And available facilities such as maintenance, cleaning, and parking management.
Dubai Land Department confirmed that this mechanism aims to ensure an accurate and fair determination of rental values, reflecting the actual quality and benefits of each property.
A paradigm shift
In his speech during the press conference, Executive Director of the Real Estate Registration Sector in DLD, Majid Al Marri, confirmed that the launch of the “Smart Rent Index” represents a qualitative shift in the regulation of the real estate sector in Dubai, as it contributes to enhancing transparency, building confidence, and providing a balanced and sustainable environment for all concerned parties. .
He said: “This index relies on artificial intelligence technologies and the building classification system, and provides fair and accurate assessments of rents, which enhances Dubai’s position as a global investment destination.”
He added: “In 2024, the number of registered lease contracts reached more than 900,000 contracts, with a growth rate of 8% in terms of number compared to last year, which reflects the growing confidence in the Dubai real estate market, thus enabling all parties to the rental relationship to make informed decisions, including… It achieves the ambitions of all parties and enhances the long-term sustainability of the market.”
Uniform standards
The index is based on unified and clear standards to ensure transparency in the real estate evaluation process. An accurate calculation mechanism has been developed that takes into account all factors affecting the rental value, including the state of the real estate market.
The system is characterized by flexibility thanks to the continuous updating of standards to keep pace with changes in the market and ensure that the aspirations of landlords and tenants alike are met.
The press conference also witnessed a detailed presentation on the new rental index, presented by the Director of the Rental Affairs Department at Dubai Land Department, Khaled Al Shaibani, during which he reviewed the advantages of the innovative index and its role in enhancing transparency and developing the real estate sector, which contributes to achieving a balanced and sustainable environment that serves all concerned parties. .
Package of initiatives
Earlier, the Dubai Land Department launched a package of initiatives to enhance the efficiency of the sector and simplify procedures, including interactive rental contracts that enable owners and tenants to register, renew and cancel contracts with complete ease through the “Dubai Rest” application, and interactive real estate management contracts that allow owners and companies Real estate management: Registering contracts and amending them directly through the smart application, without the need for traditional procedures, and classifying the model tenant, which is an innovative system for classifying the credit level of the category of tenants, and obtaining credit reports through the “Ejari” system and the smart application. For interested dealers.
Transparency and fairness
As part of its commitment to achieving transparency and justice, the Dubai Land Department applies, through the index, a clear system for rent increases in accordance with Decree No. (34) of 2013, as the increase rates are determined based on the difference between the current rental value and the average ideal wage, starting from (0%) ) for rents that are less than 10% of the average wage, and up to 20% for rents that are more than 40% less than the average. This system aims to achieve a fair balance that protects the rights of both landlords and tenants, and contributes to market stability.
Future development
The Dubai Land Department noted that it is looking forward to developing the index continuously, to include more real estate sectors, such as commercial and industrial indicators, while adding new services aimed at improving the user experience and enhancing confidence in the market. Future efforts include providing training programs, providing specialized customer service and continuous technical support, in addition to opening multiple channels of communication to meet all the needs of beneficiaries.
The department invited all those interested and wishing to know more about the index to communicate through its approved official channels, and through a specialized team to provide support and answer all relevant inquiries.
All residential areas
The index covers all residential areas in Dubai, including prime areas, special development areas and free zones, ensuring uniformity of evaluation and pricing standards across the emirate.
It also gives landlords a reliable tool to evaluate real estate and determine rent increases in a transparent and thoughtful manner, while allowing tenants to ensure transparency and protection from unjustified increases, which enhances their confidence in the real estate market.
Majid Al-Marri:
. “The index relies on artificial intelligence technologies and the building classification system, and provides fair and accurate assessments of rents, which enhances Dubai’s position as a global investment destination.”
. The index covers all residential areas in Dubai, including prime areas, special development areas and free zones, ensuring uniformity of evaluation and pricing standards.
. 900 thousand registered lease contracts in 2024, with a growth rate of 8% in terms of number compared to 2023.
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