Official building-level data is transforming lease negotiations, with tenants using the index to challenge increases and secure fair renewals.
Dubai tenants are increasingly wielding a powerful digital tool to push back against steep rent increases at renewal: the Dubai Land Department’s Smart Rental Index. Since its launch last year, the building-specific index is bringing transparency and data-driven clarity to negotiations, often resulting in moderated hikes or no increase at all.
The shift was illustrated when tenant Jasim Mohammed received a renewal notice proposing a jump from Dh56,700 to Dh63,000 for his Al Quoz apartment. Instead of accepting, he checked the official index, which showed his building was not eligible for any increase. Upon sharing the result with his real estate office, his rent was immediately held at the existing rate.
“The Rera calculator now allows users to select a specific building name and evaluate data for that property to determine any permissible increase. This provides a fairer evaluation process,” said Niral Jhaveri, director of Property Management at Better Homes.
The updated index uses an advanced classification system that assesses a property’s characteristics, location, finishes, services, and maintenance. It determines allowable increases based on the gap between a tenant’s current rent and the average market rent for that specific building, ranging from 0% to a maximum of 20%.
Real estate experts confirm the trend. “Tenants are definitely using the index more actively. We’ve seen landlords revise or pause increases once the index showed lower permissible adjustments, choosing stability over vacancy,” noted Karamfila Jaknouz, head of Commercial at A1 Properties. She shared an example where a proposed renewal for a Dubai Marina apartment dropped from Dh225,000 to Dh205,000 after applying the index.
The tool is reshaping the role of agents as well. “We are now able to advise both landlords and tenants using clear, official data, which helps manage expectations on both sides,” Jaknouz added.
While overall rents in Dubai are forecast to rise by 4-6% in select areas in 2026, the Smart Rental Index is changing how increases are implemented during renewals. It empowers tenants with official data, moderates hikes, and introduces greater fairness and stability into Dubai’s rental market.
“Tenants are more aware of their rights now,” said property manager Shabna Ibrahim. “I have been seeing a lot of tenants getting rent increase notices and replying with screenshots of the current rental index.”
Industry observers say the index benefits all parties: tenants gain clarity, landlords gain efficiency, and the market moves toward long-term stability.
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