Majid Al Marri: 900,000 rental contracts registered in 2024, with an 8% growth
The due increase will not be applied if the landlord does not notify before 90 days
Applying the “old index” in the event of notification and signing the renewal before 2025
The Dubai Land Department confirmed that it has determined a mechanism for dealing with rent increases based on the timing of the landlord’s notification to the tenant and the date of signing the contract renewal. If the new index indicates that the property is entitled to the increase, but the landlord does not notify the tenant before 90 days from the end of the contract, the increase will not be applied.
If the landlord notifies the tenant of the rent increase before 90 days and the property was entitled to the increase at that time according to the old index, but the new index indicates that the property is not entitled to the increase, the renewal date will be considered so that the old index is applied if the contract is renewed before the current year (2025), but if the renewal is signed during the current year, the new index will be applied.
Inflation Settlement
The Smart Rent Index application from the Dubai Land Department contributed to settling general inflation in Dubai for the year 2025; as the index contributed to controlling and organizing the mechanism of rental increases, which positively reflected on the cost of living in the city. The index covered all residential areas in Dubai, including the main areas, areas with private development, and free zones, and relies on artificial intelligence technologies to provide accurate and unified assessments of rental prices, which enhances transparency and achieves justice in the real estate market.
The new adjustments to rental values are based on the smart index, which determines the increase due based on data extracted from various factors, such as the values of rental contracts in the building and the average rental values in the area, in addition to the building classification. In addition, a clear mechanism has been defined to deal with rent increases based on the timing of the landlord’s notification to the tenant and the date of signing the contract renewal.
Mechanism for applying increases
This mechanism indicates that in cases where the landlord has notified the tenant of a rent increase according to the index 90 days before the end of the contract, the increase will be applied if the index confirms that the property is entitled to it. If the new index indicates that the property is eligible for an increase but the landlord does not notify the tenant 90 days before the end of the contract, the increase will not be applied.
If the landlord notifies the tenant of a rent increase 90 days before and the property was eligible for an increase at that time according to the old index, but the new index indicates that the property is not eligible for an increase, the renewal date will be considered so that the old index will be applied if the contract is renewed before the current year (2025), but if the renewal is signed during the current year, the new index will be applied.
Ensuring Transparency
Majid Al Marri, Executive Director of the Real Estate Registration Sector at the Dubai Land Department, pointed out that the recent launch of the smart rental index was a fundamental step towards ensuring transparency in determining rents, and stressed Dubai’s commitment to digital transformation and enhancing justice in the real estate market.
“The smart index helps reduce inflation and helps stakeholders make investment decisions based on reliable data,” he said. Al Marri also explained that the index sets fixed criteria for determining rental increases based on actual rental values and market updates. This comes at a time when confidence in Dubai’s rental market is growing, with more than 900,000 rental contracts registered in 2024, an 8% growth compared to 2023. As part of its commitment to keeping pace with market developments, DLD will continue to update the smart rental index periodically to keep pace with changes in the rental market, to ensure a fair balance between landlords and tenants in the Emirate of Dubai.