Rent prices in Dubai continue to rise, but tenants now have better protection against sudden increases. Under new rules, landlords must notify tenants at least 90 days before a rent hike takes effect. This update is designed to ensure transparency and fairness in the rental market.

Previously, rent increases could sometimes take tenants by surprise. Now, under the updated Smart Rent Index, a landlord must provide a 90-day notice before a lease renewal if they plan to raise the rent. However, an increase is only allowed if the Smart Rent Index confirms the property qualifies for it.

If a landlord fails to notify the tenant within this 90-day period, they cannot raise the rent — even if the index permits it. Additionally, if a previous version of the index allowed for an increase but the new one does not, the latest index at the time of renewal will determine the final rent.

Dubai’s population has been growing rapidly, driving up demand for rental properties. In 2024, rental prices increased for the 15th consecutive quarter, with apartment rents rising by 19% annually and villa rents by 13%. To prevent excessive rent hikes and ensure stability in the market, these new regulations aim to create a more balanced relationship between landlords and tenants.

The updated Smart Rent Index, launched by the Dubai Land Department in January 2024, replaces the older system, which was updated only once a year. This new index uses artificial intelligence to provide real-time rental price updates, making it more accurate and adaptable to market trends.

Key features of the new index include:

  • Real-time updates on rental prices.
  • A star rating system for residential buildings.
  • A focus on individual buildings rather than entire districts.
  • Coverage of all Dubai areas, including both freehold and non-freehold zones.

If you’re renting in Dubai, staying informed about the Smart Rent Index can help you understand whether a rent increase is justified. Before renewing your lease, check if your landlord has given proper notice and whether the index supports any proposed rent change.

These regulations bring more transparency to the rental market, ensuring that both tenants and landlords can make fair, informed decisions. If you’re facing a rent hike, make sure to verify the details and know your rights before signing your next lease agreement.