The new rental index has been expanded to add star rating system, data of old and new buildings, average rent in the area and the building as well.
Relying on artificial intelligence (AI), the index considers all technical and service-related aspects of properties. Dubai has rated residential buildings from one to five star, depending on different factors such as amenities, quality, maintenance, and facility management among others.
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Here is all you need to know about the Smart Rental Index:
How can people access it?
Tenants and landlords can access the rental index through the Dubai Land Department's website.
What is the purpose behind the launch of Smart Rental Index?
It is aimed at providing fair and accurate rental valuations to tenants, landlords and investors to give a clearer picture to three parties.
What does it cover?
The index covers all residential areas in Dubai , including key districts, special development zones, and free zones, ensuring standardised valuation and pricing criteria.
What aspects of buildings are covered in the index?
The index relies on an advanced building classification system that considers all technical and service-related aspects of properties. Each building is evaluated based on a comprehensive set of criteria, including technical and structural characteristics, the quality of finishes and maintenance, the building's strategic location and its spatial value, as well as the level of services and facilities available, such as maintenance, cleanliness, and parking management. This mechanism aims to ensure accurate and fair determination of rental values, reflecting each property's true quality and advantages.
Does index cover commercial buildings as well?
No.
Will rents go up with the launch of Smart Rental Index?
Yes, rent will go up if your building has a higher rating.
How much can rent hike be?
Rental increases are applied in accordance with Decree No. (34) of 2013. The increase percentages are determined based on the difference between the current rental value and the average market rent. Rental increases start at zero per cent for rents that are less than 10 per cent below the average market rent and can reach up to 20 per cent for rents that exceed the average by more than 40 per cent.
Can old building owners also increase rent?
Provided they upgrade and renovate the building, resulting in a higher rating of the building.
Can the new index be updated regularly?
Yes. According to DLD, the index can be updated daily to reflect the latest data and rental trends in Dubai, unlike the previous index, which was updated on a quarterly, semi-annually or annual basis.
Will the Smart Rental Index attract more foreign investment?
Yes. More transparency and clarity in rental income will help local and foreign investors launch their projects and property purchases.