The Dubai Land Department (DLD) is always developing new methods and integrating modern technology to promote a real estate scene ahead of the game. This January, the DLD has rolled out a new Smart Rental Index which seeks to promote transparency and foster trust.
How it works
The new Smart Rental Index is built on a 5-star classification system which is updated daily to account for any changes and provide results based on live data. The quality of the building, available amenities, services and strategic location are all factored into the classification system. These factors ensure fairness in various cases. For example, tenants of older buildings in luxurious or fancy areas will be charged rent based on the quality of the building itself, rather than the quality of neighboring buildings. However, the owner or landlord can charge more in the case they renovate the building and improve its rating.
Purpose
The main aims of the Smart Rental Index are:
- Promote transparency: The index provides a definitive answer to rent inquiries, creating clarity and transparency for owners, tenants, and investors.
- Promote fairness: Setting market aligned prices helps prevent tenants from being overcharged and entitles landlords to an accurate valuation of their property.
- Foster trust: The index supports smoother transactions with reliable information which enhances trust between tenants, owners, investors and also brokers.
How to access the index
According to the DLD’s website, the index can be accessed through:
- Land Department website (Ejari system)
- Dubai REST App
- The Land Department website
- DubaiNow App
Building on the Residential Rental Performance Index (RRPI) launched in 2022, the rental index aligns with the Dubai Real Estate Sector Strategy 2033 objectives. Overall, the rental index sets a new tone of fairness and transparency for the future of Dubai real estate.