Dubai’s residential rental market is undergoing a significant transformation as the government’s Smart Rental Index reshapes renewal negotiations between landlords and tenants. The digital tool, launched by the Dubai Land Department last year, provides building-specific data that is creating unprecedented transparency in the rental process.
The system’s impact is demonstrated through cases like Jasim Mohammed, an Al Quoz resident who successfully challenged a proposed rent increase from Dh56,700 to Dh63,000. After consulting the official index, which showed his building was ineligible for any increase, his real estate office immediately retracted the hike, maintaining his current rate.
Real estate experts confirm this represents a growing trend. Niral Jhaveri, Director of Property Management at Better Homes, observes that tenants are actively leveraging the index to ensure fair evaluations. ‘In many leasehold buildings, there have been no significant increases, or rents have remained the same for certain unit types,’ Jhaveri noted.
The index employs an advanced classification methodology that evaluates properties based on technical characteristics, structural quality, finishing standards, maintenance levels, location value, and service provisions including cleanliness and parking management. Permissible increases are calculated according to the disparity between current rents and average market rates, ranging from 0% to a maximum of 20%.
Karamfila Jaknouz, Head of Commercial at A1 Properties, emphasized the shift from speculative pricing to transaction-based valuations. ‘Pricing is no longer driven by asking rents or assumptions but by real, registered transactions,’ Jaknouz explained. This data-driven approach benefits both parties: tenants gain negotiation clarity while landlords achieve occupancy stability, with many opting to maintain existing rates rather than risk vacancies.
Despite projections of continued rental growth in Dubai’s high-demand areas—estimated at 4-6% for select locations in 2026—the index is moderating renewal increases for existing tenants. Property managers report tenants increasingly responding to increase notices with official index screenshots, demonstrating heightened awareness of rental rights.
The tool has also enhanced the role of real estate agents, who can now advise both parties using authoritative data, managing expectations more effectively and contributing to long-term market stability.