Dubai: 90-Day notice must for rent hikes even under smart rental
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According to the Dubai Land Department, landlords who are entitled to rate increases under the new smart rental index must provide renters a 90-day notice before their lease contracts expire. Even if the property qualifies for an increase in rental rates under the new index, tenants must still provide 90 days notice.
The Dubai Land Department announced on Sunday that if a landlord provided the minimum 90-day notice and the previous index justified a rent increase but the current index did not, the renewal date will be determined by two variables. If the contract was renewed prior to 2025, the old index will be used; otherwise, the new index will be used if the contract has been extended after 2025.
DLD developed a new smart rental index in January 2025, which includes several new factors such as building classification, old and new rentals, and location, among other things. This new index aims to make the market more transparent.
Understanding the smart rental index
The Dubai Land Department (DLD) has created the DLD Smart Rental Index, which aims to transform the emirate’s rental sector. This unique solution aims to increase transparency and provide real-time insights into the rental market in residential areas around the emirate, including districts, special development zones, and free zones.
The DLD Smart Rental Index will employ artificial intelligence and big data analytics to give accurate, up-to-date information based on current market conditions. The rental index was recently upgraded to incorporate a star rating system, information on ancient and new buildings, the average rent in the region, and the specific building itself. It is consistent with Dubai’s Digital Strategy and the Dubai Real Estate Sector Strategy 2033 aims.
How the rules affect Tenants and Landlords
The index uses artificial intelligence to provide accurate and consistent rental price estimates for all residential regions, including major districts, special development zones, and free zones. This improves market transparency, promotes fairness, and boosts confidence in Dubai’s real estate business.
A smart index determines the applicable increase based on data from numerous sources, including rental contract values in the building, typical rental values in the neighborhood, and building classification.
Furthermore, a clear structure for managing rent increases has been devised, taking into account the time of the landlord’s notice to the tenant and the contract renewal date.
Steps Landlords must follow before increasing rent
This method states that if a landlord informs the tenant of a rent increase at least 90 days before the contract expires, the increase will only be implemented if the Smart Rent Index certifies the property’s eligibility.
- Qualification and Enforcement Mechanism for Rent Increases
- If the contract is renewed between now and 2025, the new index will take effect.
- Ensuring transparency and improving market fairness.
Majid Al Marri, CEO of Dubai Land Department’s Real Estate Registration Sector, stated that the recent launch of the Smart Rent Index is a significant step toward ensuring rent transparency while reinforcing Dubai’s dedication to digital transformation and market fairness.
DLD’s Clarification on Rent Hike Regulations
On Sunday, February 16, DLD confirmed that if a landlord provided a 90–day notice and the old rental index justified the increase but the current index did not, two regulations apply:
- Contracts renewed before 2025 will use the previous index.
- The new index will apply if the contract is renewed in 2025.
Majid Al Marri, CEO of DLD’s Real Estate Registration Sector, underlined that the recent launch of the Smart Rent Index is an important step toward assuring rent transparency while reinforcing Dubai’s commitment to digital transformation and market fairness.
He stated that this strategy helps manage inflation and provides investors with solid facts to make informed decisions.
To estimate permitted rent increases, the Smart Rental Index takes into account a variety of parameters such as building categorization, current and historical rental rates, and unique location attributes. Importantly, even if the index suggests that a rent increase is justified, landlords must send a formal notification at least 90 days ahead to the lease’s expiration.
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