What Is the Smart Rental Index in Dubai?

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Previously, the RERA rent increase calculator provided the average rent value of neighbourhoods, based on the area, unit type and number of bedrooms. However, Smart Rental Index is a game-changer tool.

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The Smart Rental Index helps determine accurate rent by utilising real-time Ejari data, AI algorithms and building classifications, offering fair rental values. 

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You can determine a more precise rental value based on the following: 

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• Building quality and services
• Location-specific buildings and proximity to amenities
• Updated market data 
• Property type and bedrooms

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Its core purpose is to ensure transparency, consistency, and fairness across Dubai’s rental market. Moreover, Smart Rental Index has the following features:

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AI-Driven Market Analysis

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• Uses real-time data from Ejari-registered contracts
• Applies machine learning models to detect pricing trends

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Building Classification System

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• Rates buildings based on over 60 technical and service-related criteria
• Considers finishes, maintenance, amenities, security, and sustainability

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Coverage Across Property Types

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Currently, the new Rental Index by DLD provides building level insights for ‘Residential Properties’. However, other property types, such as commercial, industrial and staff accommodation doesn’t have the same building level insights available.

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Average Rental Index From Location Maps

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You can use the location map on Smart Rental Index. You can simply select the area. After that, add your preferred property type, unit and bedroom configuration to find the rent range. 

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Benefits of Smart Rental Index for Tenants, Landlords and Investors

Tenants

When renting in Dubai, you can find the accurate rent value before signing the tenancy contract. Also, you can negotiate the rent at the time of contract renewal according to the rent increase laws in Dubai.

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This system prevents arbitrary rent hikes while allowing landlords to adjust rents gradually toward market value.

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Landlords and Property Owners

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Property owners can stay updated with rental prices and set a fair rental value of their property. If the rent is below market average, landlords can increase the rent based on the RERA rental increase laws.

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Investors

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With the help of the Smart Rental Index, investors can identify the top areas that generate high rental income in Dubai. As an investor, you can make the best decision that will yield a high ROI.

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How to Use the DLD Smart Rental Index Calculator

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The Smart Rental Index calculator is accessible via the Dubai Land Department website and the Dubai Now app.

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Step 1: Access the Tool

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• Visit the DLD e-services portal, DubaiNow, or the Dubai REST app
• Select Smart Rental Index
• No login required for basic searches

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Step 2: Enter Property Details

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• Property type (residential)
• Area and building
• Bedrooms
• Input current rent

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• Select the Location Map
• Manoeuvre the map and choose the neighbourhood
• Add details like: 
  
  • Property Type
  • Unit Type
  • Bedrooms
• Click Display Results

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Step 4: Calculate Allowable Increase

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• System automatically applies RERA increase caps
• Shows the maximum permitted rent for renewal

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How Building Classification Affects Rent Calculations

Building classification in Dubai helps with accurate rent calculations. This classification is based on the following factors:

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• Construction quality and finishes
• Maintenance standards
• Cleanliness and security
• Parking, amenities, and sustainability
• Age and regulatory compliance

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Based on the building ratings, the rental index can help determine a more precise rent value. This helps avoid unfair rent increases and the implementation of laws.

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FAQs

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1.  How Does the Smart Rental Index Calculate Allowable Rent Increases?

The calculation process follows a clear, data-driven approach:

•  AI evaluates Ejari contracts, building classification, property type, location, age, and amenities.
• The Smart Rental Index calculates the accurate rent
• It also calculates the maximum rent increase allowed according to the laws and regulations

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2.How Much Should I Spend on Rent in Dubai?

As per the experts, your ideal annual rent in Dubai shouldn’t be more than 30% of your yearly income. Consider it a rule of thumb to live a good life and meet all your expenses. It is also recommended to match your expenses with the timing of your income which reduces the likelihood of balloon upfront and rental payments. Keyper facilitates you in splitting your cheques into monthly payments through its rent now pay later service, allowing you to keep your rental expenses in check on the go.

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The Smart Rental Index has fundamentally reshaped Dubai’s rental ecosystem. By combining AI, real-time data, and regulatory oversight, it ensures fairness while supporting sustainable growth for landlords and investors.

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Whether you are renewing a lease, planning an investment, or resolving a dispute, the Smart Rental Index is now the single source of truth for rental values in Dubai.

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This content is for informational purposes only and does not constitute legal or financial advice. Rental regulations in Dubai are subject to change. Please verify all information with the Dubai Land Department and consult qualified professionals before making any rental or investment decisions.