Dubai landlords must notify tenants 90 days before lease expiration for any rent increases, which will now be determined by the Smart Rental Index, according to the Dubai Land Department (DLD).

The AI-powered Smart Rental Index analyzes rental contracts within buildings, area averages, and classifications to regulate rent adjustments. However, if landlords fail to provide the required 90-day notice, they cannot implement an increase, regardless of the index's findings.

Contracts renewed before 2025 will follow the previous rental index, while those renewed in 2025 must comply with the new system.

The DLD reports that this index has helped control rental prices and curb inflation across Dubai. In 2024, over 900,000 lease contracts were registered, reflecting an 8% increase from the previous year.

DLD’s AI-driven system ensures transparency, providing tenants and investors with reliable data for informed decision-making. The department also plans to regularly update the index to reflect market trends.