"Dubai lands" Launches the Smart Rental Index
DUBAI, 2nd January, 2018 (WAM) – The Dubai Land Department announced the launch of the “Smart Rental Index for 2025”, which represents a qualitative shift in the organization and development of the real estate sector in the emirate, as it combines the latest technologies and real estate expertise, with the aim of providing a comprehensive service that meets the needs of the parties. different aspects of the real estate market, while enhancing transparency and fairness in determining rental values, in line with the Dubai Digital Strategy and the Dubai real estate sector strategy until 2033.
The initiative was announced during a press conference held at the department’s headquarters today, in the presence of a number of strategic partners, in addition to representatives of government agencies, real estate companies, executive directors, and department directors in the department.
The “Smart Rental Index” is based on an innovative classification system for buildings, which takes into account the technical and service aspects of real estate, and includes a set of standards such as technical and construction characteristics, quality of finishes and maintenance, the strategic location of the building and its spatial value, in addition to the level of services and facilities available such as maintenance, cleanliness and parking management.
This mechanism aims to ensure an accurate and fair assessment of rental values, reflecting the quality and features of each property.
Majid Al Marri, Executive Director of the Real Estate Registration Sector at the Land Department, said that the launch of the Smart Rent Index represents a qualitative shift in the regulation of the real estate sector in Dubai, and contributes to enhancing transparency, building confidence, and providing a balanced and sustainable environment for all concerned parties.
He pointed out that the index relies on artificial intelligence technologies and the building classification system to provide fair and accurate assessments of rents, which enhances Dubai’s position as a leading global investment center.
He added that in 2024, more than 900,000 rental contracts were registered, with a growth rate of 8% compared to the previous year, which reflects the growing confidence in the Dubai real estate market, which enhances the long-term sustainability of the market.
The Dubai Land Department has launched innovative initiatives to enhance the efficiency of the sector and simplify procedures, including interactive lease contracts and real estate management contracts through the “Dubai Rest” application, which makes it easier for owners and tenants to register and amend contracts, dispensing with traditional procedures, and introducing a model tenant classification system. Which helps in evaluating the credit level of tenants through the Ejari system.
Within the framework of its commitment to transparency and justice, the department applies a clear system for rent increases in accordance with Decree No. (34) of 2013, which is based on comparing the current rental value with the average ideal wage to ensure that fair increases are determined, ranging between 0% and 20%, depending on the difference between the rent and the average wage, and to ensure balance. Preserving the rights of landlords and tenants, which contributes to the stability of the real estate market.
The index covers all residential areas in Dubai, ensuring uniformity of evaluation and pricing standards throughout the emirate, while providing protection and confidence for tenants and landlords.
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