Dubai landlords eligible for rent increases under the newly introduced smart rental index must provide tenants with a 90-day notice before their tenancy contract expires, the Dubai Land Department (DLD) has clarified in a Khaleej Times report.
Despite the changes in the rental index, the 90-day notice period remains mandatory, ensuring tenants have ample time to prepare for any rent adjustments. The DLD stated that if a landlord issued the notice based on the previous index, but the updated version does not support an increase, the applicable rate will depend on the renewal date. Contracts renewed before 2025 will follow the previous index, while those renewed in 2025 will adhere to the new system.
Launched in January 2025, the smart rental index incorporates factors such as building classification, historical rental values, and location to provide a transparent rental pricing structure. The AI-driven system aims to enhance market fairness, reduce inflationary impacts, and align rents with actual market conditions.
According to the DLD, Dubai recorded over 900,000 lease contracts in 2024, marking an 8% year-on-year increase. Rents surged for the 16th consecutive quarter, with apartment and villa rentals rising by 16% and 13%, respectively.
Majid Al Marri, CEO of the Real Estate Registration Sector at DLD, emphasized that the index will help curb inflation while providing landlords and tenants with a clear, data-driven approach to rental pricing. The department also confirmed that regular updates will be made to ensure fairness and market stability.
