Making Life Easier for Investors and Tenants: Dubai's New Smart Rental Index

In early January 2023, the Dubai Land Department launched an updated version of the Smart Rental Index.

A tool designed to make life much easier for both investors and tenants by providing up-to-date and accurate information on rental prices for residential properties in one of the world’s fastest growing cities.

Smart Rental Index is an expanded database that includes all residential properties in Dubai, their specifications and associated services. The index covers a wide range of information, from current rental prices to the condition and convenience of parking. An important innovation is that each residential property is assigned a rating from 1 to 5 stars, which reflects the quality of construction, location, level of management and age of the building.

Previously, the index was updated quarterly, which did not always allow for changes in the rental market to be taken into account. Now, updates will occur daily, which ensures maximum relevance of the data. Access to the rental index calculator is available on the official website of the Dubai Land Department. This allows tenants and investors to receive information in real time on the correct rates for specific properties.

The main objective of the new index is to ensure that each property is “accurately and fairly priced for rent.” Since 2013, Dubai has had a decree that regulates the percentage by which landlords can increase rents based on average market rates. However, until recently, these rates were collected from large areas and did not take into account the individual characteristics of properties, which allowed landlords to set inflated prices.

With the introduction of the Smart Rental Index, which uses artificial intelligence technology, the data collection process has become more granular. Information is now collected on specific buildings and even individual units, which leads to a more accurate pricing model. This, in turn, protects tenants' rights and promotes fairer conditions in the market.

For renters, Smart Rental Index offers the ability to more accurately assess rental prices, which helps avoid overpaying and choose the most suitable options. Information on the rating of buildings also helps make a more informed choice in favor of quality properties, which is especially important for those looking for housing in Dubai.

Investors, in turn, get access to up-to-date information on market trends and can manage their assets more effectively. The ability to track changes in rental prices in real time allows you to make informed decisions and minimize risks.

The launch of the Smart Rental Index in Dubai is a step towards a more transparent and fair rental market. With the help of modern technology and a detailed approach to data collection, both renters and investors have a powerful tool for making informed decisions. This not only simplifies the rental process, but also contributes to an overall improvement in the quality of life in one of the most attractive cities for living and investing.

Are you considering Dubai as a permanent residence or as a profitable investment? Contact us and we will promptly select investment-attractive apartments in Dubai for your budget: both for personal use and for rent, and show specific calculations of their profitability!