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4 views5 pagesLandlords Required To Give 90
Dubai landlords are now required to provide a 90-day notice before increasing rents, as part of a new Smart Rental Index aimed at stabilizing the rental market. This AI-powered system allows for real-time property price updates and aims to reduce disputes between landlords and tenants. The index has already shown effectiveness in curbing inflation and increasing transparency in the rental sector.
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0% found this document useful (0 votes)
4 views5 pagesLandlords Required To Give 90
Dubai landlords are now required to provide a 90-day notice before increasing rents, as part of a new Smart Rental Index aimed at stabilizing the rental market. This AI-powered system allows for real-time property price updates and aims to reduce disputes between landlords and tenants. The index has already shown effectiveness in curbing inflation and increasing transparency in the rental sector.
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nlsnchengCopyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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News UAE
Dubai landlords
required to give 90 days
notice for rent increases
under new index
Authorities says new AI-powered system had already helped to
stabilise booming rental market
The National
February 16, 2025
Landlords in Dubai must provide a 90-day notice period of their
intention to raise annual rental charges under the updated
property index launched last month, authorities said on
Sunday.
The Dubai Land Department launched a Smart Rental Index on
January 2 – including a star rating system for residential
buildings – as part of efforts to offer greater stability to tenants
and property owners as the housing market booms and the
city's population surges.
The system uses artificial technology to deliver property price
updates at any time, unlike its predecessor, which was updated
once a year.
The old index was based on zones or districts, while the new
one focuses on each building and covers all areas in Dubai
including freehold and non-freehold areas.
Notice period is important
Dubai Media Office set out the procedures for triggering rent
increases, which are in line with the previous index and aim to
offer protection to tenants.
If a landlord notifies the tenant of a rent increase at least
90 days before the contract’s expiration, the increase will
be applied only if the Smart Rent Index confirms the
property’s eligibility.
If the landlord does not notify the tenant at least 90 days
before the contract’s expiration then no increase will be
applied, even if a rent increase was permitted under the
index.
In cases where the landlord provided the required 90-day
notice and the previous index supported the increase, but
the new index does not, the renewal date will determine
which index applies.
The terms of the previous index will be applied if the
contract was renewed before 2025
The rules of the new index will be enforced if the contract
is renewed during 2025.
How rent rises are calculated
The amount a landlord can raise rents by under the index is
dependent on the difference between the current rental value
and the average market rent, in line with previous regulations.
Less than 10 per cent below the market value for the area,
no increase is allowed
Between 11 per cent and 20 per cent below market value
for the area, a landlord can increase by 5 per cent
Between 21 per cent and 30 per cent below market value
for the area, a landlord can increase by 10 per cent
Between 31 per cent and 40 per cent below market value
for the area, a landlord can increase rent by 15 per cent
Forty-one per cent or more below market value will permit
a 20 per cent increase in rent
New index 'helps stabilise rental market'
Dubai Media Office said the smart index has already been
instrumental in “stabilising rental prices and mitigating overall
inflation in Dubai for 2025".
Majid Al Marri, chief executive of the Real Estate Registration
Sector at Dubai Land Department, said the index has promoted
greater transparency in the rental sector.
“The Smart Rent Index helps curb inflation and enables
stakeholders to make informed investment decisions based on
reliable data,” he said, in remarks carried by Dubai Media
Office on February 16.
In 2024, the number of registered leases rose 8 per cent
annually to more than 900,000, “reflecting growing confidence
in Dubai’s real estate sector”, Mr Al Marri said at a press
conference unveiling the scheme in January.
Officials expect the index to reduce disputes between landlord
and tenants by more than 20 per cent.
Rents have become a tug-of-war because of surging demand
and a population boom. Rents in Dubai increased in the third
quarter of 2024 for the 15th quarter in a row and by 18 per cent
annually, property consultancy Cushman and Wakefield Core
said in November.
Apartment rents increased by 19 per cent annually, while villa
rents recorded a more moderate increase of 13 per cent, the
research found. There has also been a continued increase in
lease renewals, which rose by 16 per cent in the third quarter.
Updated: February 16, 2025, 7:07 PM
Dubai Renting Property
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