Landlords in Dubai must now notify tenants at least 90 days before their contract expires if they intend to raise rent, according to the newly launched Smart Rental Index by the Dubai Land Department (DLD).
Without this notice, rent increases will not be applicable, even if the property qualifies under the new index, the Dubai Media Office (DMO) reported.
The Smart Rental Index, introduced in January 2025, integrates multiple factors such as building classification, historical rental values, and market trends. This initiative aims to enhance transparency and fairness in Dubai’s rental market, offering clarity to both landlords and tenants.
DLD clarified on Sunday, February 16, that if a landlord gave a 90-day notice and the previous rental index supported an increase, but the new index does not, two rules apply:
- The previous index will be applied if the contract was renewed before 2025.
- The new index will be enforced if the contract is renewed during 2025.
Majid Al Marri, CEO of the Real Estate Registration Sector at DLD, emphasised that the recent launch of the Smart Rent Index marks a significant step toward ensuring transparency in rent determination while reinforcing Dubai’s commitment to digital transformation and market fairness.
He noted that this measure helps control inflation and empowers investors with reliable data for informed decision-making.
Al Marri further explained that the index establishes clear and standardised criteria for determining rent increases, aligning them with actual rental values and market trends.
With over 900,000 residential lease contracts registered in 2024—an 8 percent increase from 2023—the index reinforces confidence in Dubai’s rental market. By utilizing artificial intelligence (AI)-driven assessments, it fosters market stability, maintains a balanced cost of living, and provides an adaptable rental framework that is regularly updated to reflect evolving market conditions.
