UAE: What is Dubai's Smart Rental Index? How it's helping tenants fight unfair rent hikes

Time of India

02-07-2025

Tenants in Dubai are using the Smart Rental Index to negotiate fairer rent prices.Ask ChatGPT
Dubai's rental market is experiencing a significant shift as tenants increasingly use the newly introduced Smart Rental Index to successfully challenge unfair rent increases imposed by landlords.
This innovative index, launched by the Dubai Land Department in January 2025, is bringing balance and transparency to a market long criticized for unpredictable and often excessive rent hikes, especially in older buildings.
Tenants Take Control: Real Cases Show How the Index Works
Grace Jackson, leasing manager for Dubai at Huspy, told local media reporters that tenants are actively using the Smart Rental Index to contest and reverse unfair rent increases.
'Tenants are using the index to stop unfair hikes and successfully,' Jackson said. She shared real examples from Dubai's rental market:
'A landlord proposed a 25 per cent increase for a tenant.
Using the Smart Index, we found the legal increase was only 10 per cent based on similar buildings and the law. After showing this, the landlord agreed to reduce the hike.'
'Another tenant in Dubai Marina challenged a 15 per cent rent jump. The Smart Index showed the market rent hadn't moved much for that building type. The landlord agreed to renew at the current rate.'
These cases highlight how tenants, equipped with transparent and data-backed rent valuations, can effectively negotiate with landlords and avoid unjustified rental inflation.
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What Makes the Smart Rental Index Different?
The Smart Rental Index isn't just a number, it's a comprehensive system that evaluates buildings with a detailed classification method. The Dubai Land Department developed it based on multiple factors, including:
Technical and structural characteristics
Quality of finishes and ongoing maintenance
Strategic location and spatial value
Level of services and facilities such as cleanliness, parking management, and maintenance
Grace Jackson said, 'The new index uses real-time data and building ratings to give more accurate rent estimates. In areas like Jumeirah Village Circle, for example, rents in older buildings have started to correct downward, while newer, well-maintained towers are maintaining or even increasing rent due to their higher building classification.'
By accounting for the condition and services of each building, the index helps prevent landlords from applying blanket rent increases and instead encourages fair pricing aligned with property quality.
Market Response: Landlords, Tenants, and Renewals
According to real estate consultancy Cavendish Maxwell, data from the first quarter of 2025 reveals a notable rise in lease renewals, which is likely linked to the introduction of the Smart Rental Index. Renewals made up 70.1 per cent of contracts in Q1 2025, up from 61.1 per cent in Q4 2024 and 62.2 per cent in Q1 2024.
This suggests tenants are feeling more empowered to negotiate and continue their leases under fair conditions.
Jackson pointed out that while most institutional landlords comply with the index guidelines, some private owners still try to push for higher rent increases.
'However, tenants are now more informed. In Business Bay, one client was able to negotiate a better deal simply by showing the official index results.
The landlord had no grounds to argue,' she said.
Echoing industry peers, Jackson said the index has effectively slowed rent increases, especially in mid-range and older buildings.
'The index has made it harder for landlords to overprice units. It's brought more balance, especially in mid-range and older buildings.'
A New Culture of Transparency and Fairness
Jackson sees the Smart Rental Index as more than just a technical tool, it's a cultural shift in Dubai's rental market.
'Agents now spend less time in subjective negotiations and more time educating both parties on what the data shows. In short, the Smart Index isn't just a tech update, it's a culture shift. And it's long overdue.'
Overall, the index is helping create a more balanced, transparent rental market that benefits tenants and landlords alike by making rental pricing more data-driven and fair.