Dubai will launch a new ‘Smart Rental Index’ in January 2025, according to the emirate’s real estate regulator. This index aims to improve Dubai’s real estate sector by focusing on accurate rental valuations.
The Dubai Land Department (DLD) stated that the initiative would foster trust, transparency, and confidence among landlords, tenants, and investors. It will provide precise and updated rental data to benefit all stakeholders, including investors, landlords, and tenants.
The index will serve as a reference for evaluating and determining rental values for new leases and renewals while helping resolve disputes.
Over the past four years, Dubai’s rental market has witnessed consistent growth, fuelled by an influx of residents and investors. Reports by Cushman Wakefield and Core reveal that rents increased by 18% year-on-year in Q3 2024, marking 15 consecutive quarters of significant growth. While villa rents stabilised with a 13% annual rise, apartment rents surged by 19%.
Demand for housing has outstripped supply, pushing rents higher across all segments.
The DLD describes the new index as a “comprehensive system” integrating advanced technologies and real estate expertise to meet market needs.
In comparison, Abu Dhabi launched its residential Rental Index in August 2024 to enhance transparency, provide rental benchmarks, and stabilise the capital’s growing rental market.
