Dubai’s Land Department has announced that landlords must notify tenants 90 days in advance before increasing rent, even when adjustments are based on the Smart Rental Index. This 90-day rule remains unchanged and applies in all cases.
According to officials from Dubai’s Land Department, if a landlord notifies tenants based on the previous index but the new index does not support the increase, the contract renewal will depend on two factors:
1. If the contract is renewed before 2025, the previous index will apply.
2. If the renewal takes place in January 2025, the new Smart Rental Index, which considers factors such as rental history and location, will be enforced.
Majid Al Marri, CEO of Dubai’s Real Estate Registration Sector, stated that the new index aims to increase transparency in the rental market and ensure that rent hikes align with actual market value. It takes multiple factors into account, including contract values within buildings, average rental rates in the area, and property classification. The integration of AI technology enables accurate and standardized rental price assessments across key areas, special developments, and free zones.
With rental prices rising consistently over the past four years and impacting Dubai’s inflation basket, regulators emphasized that the new index will enhance fairness and transparency in the real estate sector while also helping to mitigate inflation. The ultimate goal is to stabilize rental prices at realistic levels, with regular updates to maintain a fair balance between landlords and tenants.
