In January 2025, the Dubai Land Department (DLD) introduced a groundbreaking tool set to reshape the city’s rental market: the Smart Rental Index. This AI-powered, real-time rental valuation system aims to create greater transparency, fairness, and efficiency for both landlords and tenants, while offering valuable insights for investors.

Whether you’re renting, leasing, or investing, here’s everything you need to know.

What Is the Smart Rental Index?

The Smart Rental Index is a digital rental calculator integrated into DLD’s systems and the Dubai REST app. It uses real-time transaction data and an advanced building classification system to calculate fair market rental values across all residential communities in Dubai.

Properties are assessed on multiple factors, including:

• Technical and structural quality

• Maintenance standards and finishes

• Location and surrounding infrastructure

• On-site amenities and services

This building rating system ensures that a 5-star luxury apartment in Downtown Dubai is measured differently from a mid-range unit in a suburban area, giving a much more accurate rental benchmark.

How Does It Work?

The index compares your current rent to the market average for similar properties in your area and determines whether a rent increase is permissible under Dubai’s rental laws (Decree No. 34 of 2013).

Here’s the breakdown:

• 0% increase if rent is ≤ 10% below market

• Up to 5% if 11–20% below market

• Up to 10% if 21–30% below market

• Up to 15% if 31–40% below market

• Up to 20% if more than 40% below market

Important: Landlords must still provide 90 days’ written notice before any rent increase can take effect.

Benefits for Tenants

• Fair Pricing – Instantly see if your rent is aligned with the market.

• Negotiation Power – Use data-backed insights during renewal discussions.

• Dispute Resolution – Challenge unjustified increases with official evidence.

Benefits for Landlords

• Competitive Pricing – Set rents based on AI-powered market analysis.

• Reduced Disputes – Clear, transparent evaluation reduces tenant conflicts.

• Retention Strategy – Balanced pricing keeps good tenants long-term

• Market Trends – Spot rental hotspots and emerging areas for acquisition.

• ROI Optimization – Identify properties that could benefit from upgrades to justify higher rents.

How to Access the Smart Rental Index

You can use the index via:

• Dubai REST App (available on iOS and Android)

• DLD’s Official Website Rental Index Tool

Simply enter:

1. Your Ejari number

2. Property details (type, area, current rent)

3. Location

The tool will display the permissible rent adjustment based on current market data.

Why This Matters in 2025

Dubai’s rental market has seen rapid changes over the past few years, with strong demand from both residents and international investors. The Smart Rental Index helps balance this growth by ensuring rents remain fair and competitive, protecting tenants, supporting landlords, and boosting investor confidence.

In short, it’s a win-win for everyone in the property ecosystem.

If you’re a landlord or investor, use the Smart Rental Index before setting renewal rates, it’s not only compliant with DLD rules but also helps you position your property competitively. Tenants, on the other hand, can use it to ensure they’re paying a fair market price.