For thousands of tenants, including Indians, who are due for renewal of their rental contracts in Dubai, the Dubai Smart Rental Index introduced by the Dubai Land Department is turning into a perfect tool to determine whether the increase is permissible.
The tool, which uses AI, evaluates properties based on construction quality and design, technical and structural specifications, quality of finishes and maintenance, location and spatial value and services and facilities such as parking, cleanliness, and energy efficiency.
The permitted increase ranges from zero to a maximum of 20 per cent.
The current calculator makes property-specific assessment, unlike the previous calculator, which relied more broadly on area and property-category averages. It also provides a more property-specific assessment based on factors including actual rental values within the building, average rents in the relevant area and the building’s classification.
It has also been mandatory for landlords seeking a higher renewal rent to comply with Dubai’s notification requirements. DLD guidance requires either party seeking to change rental terms to notify the other at least 90 days before contract expiry, unless both parties have agreed otherwise.
To use the smart rental index, one can visit the official DLD website and click on the rental index option on the homepage - dubailand.gov.ae. The user then has to enter the information, including property type, Ejari number, contract end date and the current rental amount.
The Smart Rental Index covers all residential areas in Dubai, including freehold areas, leasehold zones and privately developed communities, except the Dubai International Financial Centre.
