The Dubai government is always looking for the next game changer to make life easier for residents. Now, it’s trying to figure out new ways for people to save on rent. Rent is only one of the major expenses in Dubai, and if residents can significantly cut down rental costs, they can enjoy better living outcomes.
To achieve this feat, the Dubai Land Department on Thursday, 2nd January 2025, introduced the Smart Rental Index. The main objective of this initiative is to leverage artificial intelligence in building a classification system that provides more accurate and fair rental valuations to landlords, tenants, and investors across all of Dubai.
The new rental index in Dubai will cover all residential areas within the emirate, free zone,s and special development zones, and will ensure fair pricing and valuation criteria are implemented across the board.
How will the Rental Index in Dubai Affect Your Future Rent?
With the introduction of the rental index calculator in Dubai, residential apartments will be evaluated based on certain criteria that include their structural and technical features, maintenance and housing quality, services available to occupants, and the location of the building.
What’s more? The Dubai rental index calculator will also take into consideration the real estate market trends at specific times to make its calculations.
You might wonder why all these are significant and how it benefits you. Well, here’s the thing: Your landlord can’t just increase the rent without doing anything that significantly impacts or increases the value of their property. In fact, rent can only go up if the property’s rating on the Smart Rental Index increases.
Any increment to rents will only be applied if it’s in accordance with the Dubai Land Department Decree Number 43, but the Smart Rental Index Dubai would ensure the rental process is smoother and fairer for all residents of the emirates, including tourists.
The decree ensures that landlords adhere to the following:
- For rents that are 10% lower than the average market rate, increments are not permitted.
- For rents between 11% to 20% below the average market rate, only a maximum of 5% increase is allowed.
- For rents between 21% and 30% below the average market rate, a maximum of 10% increase is permitted.
- For rents between 31% and 40% below the average market rate, a 15% maximum increase is permitted.
- For rents greater than 40% below the average market rate, not more than a 20% increase is allowed.
With the introduction of the rental index in Dubai, an initiative that aligns with the emirate’s ongoing Digital Strategy and the Dubai Real Estate Sector Strategy 2033 main goals, an extensive range of criteria has been considered that would include all factors that could influence rents to produce a precise calculation system.
As part of the rollout plan, the RERA rental index calculator has been updated for the first time since March 2024, setting the tone for the achievement of intended objectives.
You are required to simply enter your Ejari number to get an accurate rental evaluation and other information. The updated rent index for Dubai is accessible to both landlords and renters on the Dubai Land Department website.
Getting the Best Deals on Rental Properties in Dubai
With the recently announced changes to the rental market scene, making the choice of where to live and how to get the best deals is equally important.
Let’s look at some ways or “dos and don'ts" that can get you the best deals on rental properties within the Emirates.
1. Use the RERA Index Calculator
Considering recent efforts by the Dubai government to help residents save on rent within the emirate, a quick way to get a good rental evaluation for a desired property is by using the rental index calculator on the Dubai Land Department website. This will provide you with the needed information to make the best possible rental decision, taking your budget, preferred location, and other factors into account.
2. Get a Licensed Real Estate Agent or Company
When it comes to securing the best deals on homes or apartments for rent in Dubai, having a reliable and licensed real estate agent or company by your side can make all the difference. Get an agent with vast experience in the real estate market in Dubai, knowledge of hot apartments on the market for rent, and the right connections to secure the best deals possible for you. It’s important that you verify if an agent is licensed and registered with the Dubai Land Department before hiring them.
3. Research the Best Locations for You
Getting a good deal is beyond the monetary value. Prime locations with access to roads, bridges, shopping centers, schools, and several other facilities should be top considerations when looking for apartments.
Explore other factors such as cost of living, access to public transportation, proximity to your workplace, and availability of recreational facilities before deciding on a neighborhood to rent an apartment.
4. Compare and Negotiate Rents
Once you’ve gotten a list of preferred locations, do a quick comparison of rental costs, services, and amenities, then make a choice. When you find the ideal apartment for you, do not be shy to negotiate the terms of the agreement, rent, and other benefits you could enjoy during your stay.
Also, it’s important you know your rights as a tenant to enable you to get the best deals on rental apartments. In the case of disputes or any problems, seek legal advice or contact RERA.
The newly launched Smart Rental Index in Dubai by the Dubai Land Department seeks to revolutionize the way residents pay rent and address emerging issues surrounding the high cost of rent and living within the Emirates. It will leverage artificial intelligence to provide landlords, renters, and investors with real-time updates on the real estate market in Dubai, taking into consideration factors such as building quality, facilities, and technical features, among others. This index will help save on rental costs and improve the quality of life for residents of the Emirate.
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