Dubai Property & Rental Law: Entering the “Smart Rental Index” Era
Jan 08, 2026
listYourBsuiness
What Is the Smart Rental Index?
The Smart Rental Index replaces the old method of calculating rent increases based on general area or district averages.
What’s changed?
Previously:
Rent calculations were based on broad averages of an entire area.
Buildings of different quality were treated the same.
Now:
The index uses building-specific data, powered by AI.
Factors considered include:
Construction quality
Building age
Maintenance standards
Amenities and facilities
Overall condition of the property
This makes rent increases more accurate, fair, and transparent for tenants and landlords.
How the Smart Rental Index Affects Rent Increases
Rent increases are no longer arbitrary. They are strictly controlled based on how your current rent compares to your building’s average rental value.
Legal Rent Increase Slabs (Key Rule)
You can check your exact eligibility using the Dubai REST App, but the most searched scenario is:
If your current rent is more than 40% below the average rent of your building,
???? the maximum legal increase allowed is 20%.
Other slabs also apply for smaller gaps, but no landlord can exceed the percentage shown in the official index.
⚠️ Important:
If a landlord asks for more than what the Smart Rental Index allows, the increase is illegal, even if the tenant verbally agrees.
The 90-Day Rule: One of the Most Important Tenant Rights
This is currently one of the most searched rental law topics in Dubai.
What is the 90-Day Rule?
A landlord must give written notice at least 90 days before the contract expiry if they want to:
Increase rent
Change contract terms
If the landlord fails to do this:
❌ Any rent increase becomes legally invalid
✅ The tenant has the right to renew at the same rent for the next term
Key clarification:
The notice must be written (email, registered message, or official communication)
Verbal discussions or late reminders do not count
This rule protects tenants from last-minute rent hikes and pressure tactics.
How to Check Your Legal Rent Increase (Step-by-Step)
Tenants and landlords can verify everything officially using the Dubai REST App:
Open the Dubai REST App
Go to the Rental Index section
Enter:
Ejari details
Property and building information
Instantly view:
Average building rent
Allowed rent increase percentage
Legal maximum rent for renewal
This tool removes confusion and prevents disputes.
Why This Law Is a Big Win for the Market
For tenants:
Protection from unfair increases
Transparency and legal clarity
Stronger negotiation power
For landlords:
Fair market-based pricing
Reduced disputes and RERA cases
Long-term tenant stability
For Dubai’s real estate market:
Higher trust
Better building quality incentives
Data-driven regulation
Common Mistakes People Still Make
Assuming area averages still apply
Accepting rent increases without checking Dubai REST
Ignoring the 90-day notice requirement
Believing verbal notices are legally valid
Avoiding these mistakes can save tenants thousands of dirhams.
Final Thoughts
Dubai’s Smart Rental Index marks a major shift toward fairness, transparency, and data-driven regulation. Whether you’re a tenant or a landlord, knowing your rights—and verifying them through official channels—is the smartest move you can make in today’s rental market.
If your rent renewal is coming up, check the index, confirm the notice period, and protect your legal rights before agreeing to anything.
The Smart Rental Index replaces the old method of calculating rent increases based on general area or district averages.
What’s changed?
Previously:
Rent calculations were based on broad averages of an entire area.
Buildings of different quality were treated the same.
Now:
The index uses building-specific data, powered by AI.
Factors considered include:
Construction quality
Building age
Maintenance standards
Amenities and facilities
Overall condition of the property
This makes rent increases more accurate, fair, and transparent for tenants and landlords.
How the Smart Rental Index Affects Rent Increases
Rent increases are no longer arbitrary. They are strictly controlled based on how your current rent compares to your building’s average rental value.
Legal Rent Increase Slabs (Key Rule)
You can check your exact eligibility using the Dubai REST App, but the most searched scenario is:
If your current rent is more than 40% below the average rent of your building,
???? the maximum legal increase allowed is 20%.
Other slabs also apply for smaller gaps, but no landlord can exceed the percentage shown in the official index.
⚠️ Important:
If a landlord asks for more than what the Smart Rental Index allows, the increase is illegal, even if the tenant verbally agrees.
The 90-Day Rule: One of the Most Important Tenant Rights
This is currently one of the most searched rental law topics in Dubai.
What is the 90-Day Rule?
A landlord must give written notice at least 90 days before the contract expiry if they want to:
Increase rent
Change contract terms
If the landlord fails to do this:
❌ Any rent increase becomes legally invalid
✅ The tenant has the right to renew at the same rent for the next term
Key clarification:
The notice must be written (email, registered message, or official communication)
Verbal discussions or late reminders do not count
This rule protects tenants from last-minute rent hikes and pressure tactics.
How to Check Your Legal Rent Increase (Step-by-Step)
Tenants and landlords can verify everything officially using the Dubai REST App:
Open the Dubai REST App
Go to the Rental Index section
Enter:
Ejari details
Property and building information
Instantly view:
Average building rent
Allowed rent increase percentage
Legal maximum rent for renewal
This tool removes confusion and prevents disputes.
Why This Law Is a Big Win for the Market
For tenants:
Protection from unfair increases
Transparency and legal clarity
Stronger negotiation power
For landlords:
Fair market-based pricing
Reduced disputes and RERA cases
Long-term tenant stability
For Dubai’s real estate market:
Higher trust
Better building quality incentives
Data-driven regulation
Common Mistakes People Still Make
Assuming area averages still apply
Accepting rent increases without checking Dubai REST
Ignoring the 90-day notice requirement
Believing verbal notices are legally valid
Avoiding these mistakes can save tenants thousands of dirhams.
Final Thoughts
Dubai’s Smart Rental Index marks a major shift toward fairness, transparency, and data-driven regulation. Whether you’re a tenant or a landlord, knowing your rights—and verifying them through official channels—is the smartest move you can make in today’s rental market.
If your rent renewal is coming up, check the index, confirm the notice period, and protect your legal rights before agreeing to anything.
