Dubai’s real estate regulator has announced the launch of a new Smart Rental Index in January 2025. This index aims to improve the emirate’s real estate sector, focusing on rental valuations.
Enhancing Trust and Transparency
The Dubai Land Department (DLD) stated that the index will help boost trust, transparency, and confidence among landlords, tenants, and investors. It will offer accurate and up-to-date data for all stakeholders, ensuring a reliable resource for rental calculations.
This tool is expected to act as a benchmark for tenants, landlords, and real estate brokers in Dubai. It will assist in determining fair rents for new agreements and renewals, while also helping resolve disputes over rental values.
Market Alignment
Earlier this year, the DLD updated the rental index in March to align rates with current market trends. Over the past four years, rental prices in Dubai have been increasing due to a surge in new residents and investors.
In 2024 alone, the population grew by over 100,000, pushing demand for housing higher than the available supply. The result has been a consistent rise in rents across the emirate.
Rental Market Trends
According to reports from Cushman Wakefield and Core, rents across Dubai rose by 18% year-on-year during Q3 2024. This marked the 15th consecutive quarter of significant growth.
- Villa rents saw a 13% year-on-year increase, showing some stabilisation.
- Apartment rents climbed 19% during the same period, reflecting stronger demand.
Despite new developments, demand continues to outpace supply. In Q3 2024, around 9,157 residential units were delivered, bringing the year’s total to 22,900, including both apartments and villas.
Advanced Technology for Real Estate
The Smart Rental Index is described by the DLD as a “comprehensive system” combining modern technologies with real estate expertise. It promises efficient services tailored to the needs of all market stakeholders.
Regional Comparison
Dubai isn’t the only city focusing on rental transparency. In August 2024, the Abu Dhabi Real Estate Centre (ADREC) launched its residential Rental Index. This platform provides indicative rental values and promotes market stability, catering to both landlords and tenants in the UAE capital.
