Dubai might update its Rental Index

Dubai is thinking about a strategy to change its Rental Index so that it is tied to specific buildings rather than trends in a neighbourhood or region. It’s currently just a suggestion, but if it were to become law, it would make the process of determining rates more transparent. The onus of ensuring that his rental requests are reasonable will fall to the landlord or building owner.
“For too long, rent increases or demands have been about the area that particular property or building is in,” said a senior source in the industry. “With the plan that’s being worked out, Dubai’s new Rental Index will be based on the age, quality, other facilities within that building. So, if there are 50 towers in a particular district, rent changes will be based on each tower rather than what’s happening with demand and supply in that area.”
Interestingly, this revised plan applies to apartment blocks rather than villas. It’s not clear whether a new index will be worked out for villas.
A change, if given the go-ahead, will come at a time when rents in Dubai have recorded 15-25 per cent increases in most neighbourhoods. Locations such as the Palm, Downtown and Dubai Marina have seen increases even higher than the average. 
Whatever be the case the plan represents the biggest makeover for the Dubai Rental Index, and will ensure rental demands are transparently worked out by landlords. And that would be something that tenants will be able to judge for themselves.
If rents in a neighbourhood for new buildings rise, the source explained, “that does not automatically indicate that a much older building in the neighbourhood, one without many critical features, may seek renters for similar increases.” The rating system for individual buildings in Dubai must include landlords and building owners for this reason. Since the program’s beginning in 2015–16, it has evaluated both new and historic structures in the city.