Dubai’s new digital rental index is set to provide real-time updates on rental trends, offering enhanced transparency at the building and area levels.

Dubai: Tenants in Dubai can look forward to greater clarity on rental changes and reduced instances of arbitrary rent hikes with the launch of the digital rental index in early 2025.

Currently, the Dubai rental index is updated quarterly. In April 2024, the Dubai Land Department (DLD) released a revised index after a gap of more than two years. During this period, rents in the city saw significant increases across various locations, affecting both new and older buildings alike.

“This is the perfect time to introduce the real-time rental index,” said a landlord with multiple properties in two prominent upscale communities. “The gap between rents for older and newer properties has largely narrowed, making the timing ideal. With the new index, both tenants and landlords will have a clear, official reference for setting rents.”

Property market experts are calling the upcoming index one of the most significant initiatives for 2025 by Dubai’s real estate authorities. On Sunday, December 30, the DLD confirmed the imminent launch of the index, with further details expected at an event on January 2.

Real-time rental updates will help establish clear rental benchmarks for specific buildings and areas, curbing landlords' ability to impose arbitrary increases during lease renewals. Dubai’s smart rental index is expected to become the definitive standard, offering real-time data and metadata access to stakeholders.

Rental Increase Guidelines

Landlords must adhere to specific limits on rent hikes based on how far their property’s rent is below the market value:

• 11%-20% below market value: Up to 5% increase
• 21%-30% below market value: Up to 10% increase
• 31%-40% below market value: Up to 15% increase
• Over 40% below market value: Up to 20% increase

Over the past three years, some landlords have implemented rent hikes exceeding these prescribed limits, particularly for units leased before the property market boom. However, this trend has largely stabilized. With an influx of new homes expected in 2025, the digital rental index will set clearer benchmarks for landlords, ensuring fairer rental practices.

“Landlords of newly completed properties will no longer be able to demand 10%-20% higher rents than the area average simply because the unit is new,” noted a property market insider.

For tenants, the new index brings hope for more predictable rent renewals without sudden spikes.