Landlords with older properties must provide clear justifications for increasing rents.
Dubai: Tenants in Dubai can look forward to greater transparency in rental adjustments and reduced chances of facing arbitrary hikes once the new digital rental index becomes operational in early 2025.
Currently, the Dubai rental index is updated quarterly. In April 2024, the Dubai Land Department released a revised index after a gap of more than two years. During this time, rents across Dubai experienced sharp increases, regardless of location or whether properties were in new or older buildings.
“Now is a good time for the real-time Dubai rental index to go live,” said a landlord managing multiple properties in two prominent upmarket communities in the city. “The gap in rents charged for older and newer properties has largely been bridged, making the timing of the new index perfect.
“Tenants and landlords alike will have clarity on what rents should be. And it’s all official.”
Market experts emphasize that the new index represents a pivotal initiative for Dubai’s real estate sector in 2025. On Sunday, December 30, the Land Department confirmed the upcoming launch of the digital index. More details will be shared during an event scheduled for January 2.
Eliminating Arbitrary Rent Hikes:
With real-time rental updates, the index will standardize rental rates for specific buildings and areas, potentially curbing landlords’ ability to impose arbitrary hikes during lease renewals.
“Dubai’s smart Rental Index is expected to become the standard, offering real-time updates and access to individual metadata,”
said Rohit Bachani, co-founder of Merlin Real Estate.
Bachani further explained, “Landlords with units in older buildings will no longer be able to set prices arbitrarily compared to newer properties. Instead, they’ll need to offer competitive pricing and pass multiple verification checks.
“This will provide much-needed relief not just for tenants but also for brokers, fostering greater transparency and paving the way for more regulated pricing—essential for sustaining the ongoing property boom.”
What Dubai’s Landlords Should Know About Rent Hikes?
According to Bachani, “The new Dubai Rental Index offers a more precise measure than traditional area-based indices, particularly in areas with older buildings. This progress is made possible by initiatives such as the ‘Makani’ system, Ejari, and others implemented by the Dubai Land Department (DLD). These efforts have created new opportunities for data-driven insights, enabling a more trusted real estate ecosystem.”
For tenants, this translates into a better chance of avoiding sudden rent increases at lease renewal time.
