Armed with official building-level data, residents are successfully challenging renewal increases, bringing a new era of transparency to the market.
DUBAI – A powerful digital tool is shifting the balance of power in Dubai’s rental market, saving tenants thousands of dirhams at renewal time. The Dubai Land Department’s Smart Rental Index, launched last year, is empowering residents with official, building-specific data to successfully negotiate—and often nullify—proposed rent increases.
The trend is starkly illustrated by the case of Jasim Mohammed, a tenant in Al Quoz. Facing a proposed increase from Dh56,700 to Dh63,000 upon renewal, he consulted the Smart Rental Index. The platform clearly stated his building was “not applicable” for any increase. Upon sharing this official finding with his real estate office, the hike was immediately rescinded, and his rent remained unchanged.
“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 far fairer evaluation process,” said Niral Jhaveri, Director of Property Management at Better Homes.
How the Index Creates a Fairer Market
The index’s advanced algorithm classifies buildings based on technical specs, finishes, location, services, and maintenance. It then calculates any legally permissible rent increase—from 0% to a maximum of 20%—based on the gap between the tenant’s current rent and the verified average market rent for that specific building.
This data-driven approach is replacing guesswork and anecdotal evidence. “Pricing is no longer driven by asking rents or assumptions, but by real, registered transactions,” explained Karamfila Jaknouz, Head of Commercial at A1 Properties. She cited a tangible example: a Dubai Marina apartment’s proposed renewal dropped from Dh225,000 to Dh205,000 after applying the index.
A Toolkit for Tenants, Clarity for All
Agents and property managers confirm a surge in tenants proactively using the index. “I have been seeing a lot of tenants getting rent increase notices and replying with screenshots,” said property manager Shabna Ibrahim.
Jaknouz advises tenants to enter negotiations prepared: “Review the rental index, recent deals in your building, and approach negotiations with data rather than emotion.” She notes that landlords, too, are adapting, often choosing stability over vacancy when the index shows a lower permissible increase.
While city-wide rents are forecast to rise 4-6% in select areas in 2026, the index is fundamentally changing how these increases are applied during renewals. It ensures hikes are justified and standardized, protecting existing tenants from arbitrary spikes and fostering long-term market stability.
