Dubai’s Land Department has launched a new smart rental index to ensure fair and transparent rental pricing across the city. The index factors in property age, condition, location, and amenities to create a more accurate rental framework for tenants and landlords.

Key Highlights:

• Fair Pricing: The system balances rental rates by distinguishing between old, outdated buildings and modern properties with premium facilities.

• Pressure on Old Properties: Older buildings with dated amenities may need upgrades to justify rent increases. Without updates, rents in these buildings could stabilize or even drop.

• Advantage for New Properties: High-spec buildings with top-tier amenities may see rental hikes of 5-15% as market values are realigned.

Experts believe that the system promotes fairness by allowing justified rent increases while protecting tenants from arbitrary hikes. Similarly, Lewis Allsopp from Allsopp and Allsopp emphasized that the index benefits tenants and landlords alike by tying rent adjustments to tangible property factors.

With over 200 residential towers in Dubai Marina alone, the smart rental index is set to redefine the rental market, benefiting newer properties while encouraging landlords of older units to reinvest.