Dubai launches Smart Rental Index to boost real estate investor confidence

Dubai Land Department (DLD) has launched the Smart Rental Index 2025, a groundbreaking initiative aimed at boosting transparency and investor confidence in Dubai’s booming property market.

The Smart Rental Index evaluates properties based on a detailed classification system that considers technical and structural features, location, and services such as maintenance and parking management.

The index integrates advanced technologies, including artificial intelligence, to deliver fair and accurate rental valuations.

The DLD says that by incorporating these criteria, the index ensures rental values reflect a property’s true quality and market position.

Digital strategy alignment

The index aligns with Dubai’s broader goals under its Digital Strategy and Real Estate Sector Strategy 2033, further reinforcing the emirate’s reputation as a prime global investment destination.

Majid Al Marri, CEO of DLD’s Real Estate Registration Sector, described the initiative as a “pivotal transformation” for Dubai’s real estate market.

He highlighted the role of the index in fostering trust and sustainability, noting that in 2024, registered rental contracts exceeded 900,000, marking an 8% increase compared to 2023.

“This increase reflects the growing confidence in the Dubai real estate market, enabling all parties in rental agreements to make well-informed decisions, enhancing the long-term sustainability of the market,” Al Marri said, emphasising its role in securing Dubai’s position as a global leader in real estate investment.

Real-time results for investors

The index will be updated in real-time to adapt to market fluctuations, ensuring accuracy for landlords and tenants alike. It also supports existing frameworks for regulating rental increases.

According to the DLD, by standardising property valuations across Dubai’s residential areas, including free zones and special development zones, the Smart Rental Index provides a reliable tool for landlords and protects tenants from arbitrary rent hikes. Furthermore, it says the initiative will strengthen investor confidence, contributing to the long-term sustainability and stability of Dubai’s real estate sector.