If you want to find an accurate and fair rental value, the Dubai Land Department (DLD) has introduced the new smart rental index. The tool is an updated version of the RERA rental increase calculator, which helped tenants find the estimated rent prices in the area.
On the contrary, the smart rental index offers more transparency and accurate information with the help of Artificial Intelligence. Also, the DLD has added the building classification system to provide fair valuation. Let’s find out all the details about the smart rental index in Dubai.
Why Is a Smart Rental Index Needed?
Dubai’s rental market is growing. It can sometimes be volatile due to fluctuating rental prices and other factors. That’s where the smart rental index in Dubai can help find accurate value and ensure fair deals.
With the RERA rental index calculator, tenants or landlords can find the estimated rent prices. However, the smart rental index is a game changer since it will use AI and other technology to update the prices in real-time, allowing complete transparency and fair deals.
New Features in the Smart Rental Index
DLD’s new smart rental index includes real-time updates. Also, you can find the building classifications and rent of old and new buildings. The rental index includes various residential areas buildings and free zones. Here are all the latest features of the smart rental index in Dubai by DLD.
Real-Time Data Update
With real-time data integration, users can get updated information about rental prices and get a fair deal based on the valuation. If you want to rent an apartment in Dubai, you can find the updated market prices and trends. Moreover, the website automatically updates, providing insights into the market.
Building Classification
This feature takes several factors into account to classify buildings and provide their valuation. From technical features to standards and services, each building has a separate rental value. The building classification also depends upon maintenance, cleanliness, and parking management.
Benefits of Smart Rental Index
With real-time data integration and building classification, tenants, landlords and investors can make informed decisions. Also, the tool offers enhanced transparency and predictive analysis of the rental market.
Tenants Can Save Money
With the latest market value, tenants can negotiate and avoid paying more rent to the landlords. This will also reduce rental disputes in Dubai. Moreover, there will be fair pricing, allowing easy transactions.
All-in-all, it will make renting in Dubai much easier with fair pricing and transparency in the rental valuation.
Landlords Can Find Fair Prices and Deals
DLD’s smart rental index is a helpful tool for landlords in Dubai. They can make strategic decisions when renting their properties. This tool allows landlords to set competitive rental prices based on the index. Moreover, it will help landlords maximise their real estate ROI in Dubai.
Landlords can justify their strategic pricing using the rental index and the tenants will also pay a fair rent. Not only that, this index will help landlords to plan for the future investment based on the updated rental prices.
Investors Can Make Data-Driven Investments
Investors like to research and make informed decisions. This smart rental index tool in Dubai opens new opportunities for investors to make data-driven and calculated investments. Since this tool includes data of old and new buildings in Dubai, investors can easily manage their portfolio, while making good investment decisions.
FAQs
The rental index in Dubai informs the users about the estimated rental value of the property. It uses various factors like area, building, conditions and more.
Yes, but there are some conditions. If the rent of the property is 11 to 20% less than the market value according to the smart rental index, landlords can increase the rent by 5%. However if the value is 21 to 30% less, they can increase the maximum rent by 10%.
As per the projections and experts, the rent of properties in Dubai will further increase in 2025. Given that the new properties will be developed and the increasing demand will lead to an increase in rent as well.
RERA has provided four conditions for rental increase. Landlords can increase the rent on these conditions:
– If the rent is 10% less than the market value, no increase.
– Maximum increase of 5% if the rent is 11% to 20% less than the rental index value.
– If the rent is 21% to 30% less, the maximum increase can be 10%.
– If the rent is 31% to 40%, landlords can increase the rent by a maximum of 15%.
– Maximum 20% increase if the rent of the property is 40% or more less than the smart rental index.
These are all the details about the Smart Rental Index in Dubai. All the contracts registered to Ejari in Dubai must follow the index for fair pricing and transparency. Those living in the capital can check the rent value using the rental index in Abu Dhabi.
