Dubai’s Rental Market Transformed: DLD Introduces AI-Powered Smart Index & 90-Day Notice Rule
Dubai’s real estate landscape is shifting significantly, with the Dubai Land Department (DLD) reinforcing its commitment to rental price stability. In 2025, introducing a 90-day mandatory notice period for rent hikes, backed by the AI-driven Smart Rental Index, will enhance market transparency and curb inflation.
Under the latest directive, landlords must provide tenants with a 90-day advance notice before the lease renewal date if they plan to adjust rental rates. This must be validated through the Smart Rental Index, an advanced system that assesses contract values, spatial configurations, and building classifications to determine permissible rent changes.
The Dubai Media Office (DMO) clarified that failure to issue this notice will invalidate any rent increase, regardless of the index findings. Additionally, agreements renewed before 2025 will follow the existing rental framework, while those renewed in 2025 will transition to the updated system.
AI-Driven Smart Rental Index: Redefining Market Stability
The Smart Rental Index is at the forefront of Dubai’s rental market transformation. Leveraging artificial intelligence, this system meticulously evaluates rental prices across districts, special development zones, and free zones, ensuring that rental adjustments are aligned with market realities.
The Smart Rent Index is a game-changer in curbing inflation, providing investors and tenants with reliable data for informed decision-making," said Majid Al Marri, CEO of the Real Estate Registration Sector at DLD.
Dubai’s rental sector saw a remarkable 8% increase in 2024, with over 900,000 rental contracts recorded, signaling strong market momentum. To maintain equilibrium, DLD will continue updating the index periodically, ensuring it reflects evolving market conditions.
As Dubai’s real estate sector embraces innovation, these regulatory advancements position the city as a global benchmark for rental market transparency and investor confidence.