Dubai’s 90-Day Rule for Rent Hikes: How the New Smart Rental Index is Shaping the Market

The Dubai Land Department (DLD) has implemented new regulations that significantly impact the rental market in the city. As of 2025, landlords must provide a 90-day notice to tenants before any rent increases can be made. This rule, tied to the innovative Smart Rental Index, is designed to control rent fluctuations, reduce inflation, and ensure a more transparent, predictable rental market. In this article, we explore the mechanics of the new system, how it affects tenants and landlords, and what it means for Dubai's real estate market in 2025.

Understanding the Smart Rental Index

The Smart Rental Index is a data-driven system introduced by the DLD to regulate rent increases across Dubai’s residential and commercial properties. The index uses AI-powered technology to analyze contract values within different buildings, area averages, and classifications to determine reasonable rent adjustments. By factoring in various elements such as building type, district, and even development zones, the system provides a fair and accurate basis for rent pricing.

This innovative approach ensures that rent prices align more closely with the market’s true value, ultimately helping to curb inflation. With the system in place, both tenants and landlords can benefit from a more transparent process, reducing disputes and creating a more balanced real estate environment.

Key Points of the New Regulation

• 90-Day Notice: Landlords must notify tenants 90 days before a rent increase takes effect. This gives tenants ample time to evaluate their options, providing a sense of security and reducing uncertainty.
• AI-Powered Index: The Smart Rental Index uses artificial intelligence to assess rental prices based on real-time market data. This makes it one of the most advanced systems in the region for controlling rental pricing and ensuring that increases are justified and fair.
• Market Insights: The DLD’s system analyzes data from 900K+ leases signed in 2024, making it one of the most robust datasets available for rent assessment. The department plans to update this index regularly to reflect any shifts in the market.

How the Rule Affects Tenants and Landlords

For tenants, the 90-day notice rule provides clarity and stability. Instead of facing sudden rent hikes with little warning, tenants now have enough time to make necessary adjustments to their budgets, negotiate terms, or even find alternative housing if needed.

For landlords, while the new regulation requires a longer notification period, it ensures that rent increases are based on reliable market data, reducing the risk of arbitrary pricing. Landlords also benefit from the AI-driven system, which helps set competitive yet fair prices for their properties, making them more attractive to potential tenants.

Challenges in the Market and Technology Solutions

Despite these advancements, there are still challenges facing both tenants and landlords. One key issue is the timely implementation of the 90-day notice, as many landlords may not be familiar with the system’s requirements or may attempt to circumvent it. The DLD’s AI-powered system can help ensure compliance, but it requires constant monitoring and adjustment.

Another challenge is keeping up with market fluctuations. While the Smart Rental Index provides a solid framework for assessing rent, it must be updated regularly to reflect changes in the market, especially in rapidly developing areas like Dubai. This is where technology plays a pivotal role—AI’s ability to analyze vast amounts of data in real-time is essential to staying ahead of market trends and adjusting rental prices accordingly.

The Role of Reliant Surveyors in Navigating the New Market Landscape

As the Dubai real estate market evolves with these new regulations, it is more important than ever for investors, landlords, and tenants to make informed decisions. This is where Reliant Surveyors step in.

With expertise in asset and real estate valuations, Reliant Surveyors helps clients navigate the complexities of the rental market, providing insights into market trends, accurate property valuations, and strategies for investment. Whether you are looking to optimize your portfolio, assess property values, or understand the impact of new regulations like the 90-day notice rule, Reliant Surveyors offers valuable expertise that ensures you make well-informed, data-backed decisions.

Conclusion?

Dubai’s new 90-day notice rule, backed by the Smart Rental Index, marks a significant shift in the city’s rental market. With its AI-powered approach, this system aims to create a fairer, more transparent rental process that benefits both tenants and landlords. As the market continues to evolve, staying informed and making the right investment decisions will be crucial.

At Reliant Surveyors, we specialize in real estate valuations and investment strategies that help our clients navigate these changes and optimize their portfolios. If you’re looking to gain a competitive edge in the ever-changing Dubai real estate market, Reliant Surveyors is here to guide you every step of the way.

Contact us today for a consultation or visit our website Reliant Surveyors to explore how we can help you make informed, strategic decisions in the Dubai real estate market.