The Dubai Land Department launched a new smart rental index on January 1, 2025, replacing the old RERA rental calculator. The key difference is that the new system uses real-time data and AI to determine rental values, making the process more accurate and transparent. Unlike the old system, which updated rental values annually, this index updates them continuously, taking into account factors like previous and current rental contracts, building ratings (from one to five stars) and property location.

Commercial properties will be included in the index later in 2025 and currently, only buildings are rated, not individual apartments or villas.

Rental Dispute Guidance

Regarding your rent increase situation, the new smart rental index is more accurate than the old system. Under Decree 43 of 2013, rent increases are capped at 20% per year. The new index incorporates the building’s rating which might explain the rent increase despite the building's issues. The advice is to check the new rental index for a more accurate value. If the increase suggested is higher than expected, you may need to negotiate with the landlord or consider filing a rental dispute if an agreement cannot be reached. You may have a strong case based on the building's condition and the rental index data.