Dubai Simplifies Life for Investors and Tenants

In early January, the Dubai Land Department introduced an updated version of the "Rental Price Index" — the Smart Rental Index. This tool helps market participants determine fair rental prices for specific properties.

What is the Smart Rental Index?

The Smart Rental Index is an enhanced database that includes information about all residential properties in Dubai. It covers parameters such as current rental prices, building specifications, property conditions, and parking availability.

A key innovation in the updated index is the introduction of building ratings. Now, each residential property is assigned a category from 1 to 5 stars, based on factors such as construction quality, location, management level, building age, and more.

Another significant change is the increased frequency of updates. Previously, the index was revised quarterly, or in some cases annually. Now, the data will be updated daily.

Access to the index and its tools is available on the official website of the Dubai Land Department.

Why is the Index Needed?

The primary goal of the Smart Rental Index is to ensure accurate and fair determination of rental prices for individual properties.

Since 2013, Dubai has implemented legislation that limits rent increases based on average market rates. However, these rates were previously calculated using data from large areas, without considering individual building features like age and condition. This allowed some landlords to overcharge.

The updated Smart Rental Index uses artificial intelligence to analyze data at the level of specific buildings and even individual units. This contributes to a more accurate and transparent pricing model, protecting tenants' interests and helping investors make more informed decisions.

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