Dubai’s Smart Rental Index (2025): What Tenants & Landlords Must Know About Rent Increases in 2026

Dubai’s rental market has been moving fast, and many renewals now come with a big question: is this rent increase actually legal? Since the Dubai Land Department (DLD) launched the Smart Rental Index 2025, rent guidance has become more granular—often assessed at the building level rather than broad area averages. If you’re renewing in 2026, this can materially change what landlords can ask for (and what tenants should accept).

What is Dubai’s Smart Rental Index (and why it matters in 2026)?

The Smart Rental Index 2025 is DLD’s updated system designed to improve transparency and fairness in rental valuations. It uses a more detailed approach to determine rental values, including building classification and other property-related factors, rather than relying only on district-level benchmarks.

For renters and landlords, the practical impact is simple: your renewal negotiation should start with what the index says for your specific building and contract details—not just what similar listings are advertising.

The 90-day notice rule: when a rent increase becomes invalid

Even if the Smart Rental Index suggests an increase could be allowed, a landlord generally must provide at least 90 days’ notice before the contract expiry for a rent increase to apply at renewal. If proper notice is not given in time, the increase may not be applied for that renewal.

Actionable tip: keep proof of dates. Save emails/messages and confirm the contract expiry date shown on your Ejari/tenancy contract so you can verify whether the notice window was met.

How rent increase caps work (0% to 20%)

DLD’s rent increase framework ties the maximum permitted increase to how far your current rent is below the average market rent. The structure commonly applied is:

• 0% increase if current rent is less than 10% below the average

• 5% increase if 11%–20% below

• 10% increase if 21%–30% below

• 15% increase if 31%–40% below

• 20% increase if more than 40% below

This is why two tenants in the same neighborhood can face very different renewal outcomes—because what matters is the index result for the property and how your current rent compares.

How to check your rent increase using the DLD Rental Index (step-by-step)

DLD provides a rental index service that allows you to calculate the average rent and potential increase eligibility by entering your contract and unit details.

• Step 1: Open the DLD Rental Index service (web/app)

• Step 2: Enter your contract expiry date

• Step 3: Select property type, area, and bedrooms

• Step 4: Enter your current annual rent

• Step 5: Review the output (average rent and increase guidance)

Actionable tip: run the check before you negotiate. If the index shows no increase eligibility (or a lower cap than proposed), you’ll have a clear, neutral reference point for discussions.

Renewal negotiation tips for tenants (and smart moves for landlords)

For tenants: If you receive a rent increase notice, verify two things immediately: (1) the 90-day timing and (2) whether the Smart Rental Index supports the increase. If either fails, you may have leverage to keep the rent unchanged for that renewal.

For landlords: If you plan to increase rent, align your notice timing and proposed amount with the index outcome. A compliant, well-documented approach reduces disputes and improves renewal success.

• Negotiate with data: share the index result and keep the conversation factual

• Offer trade-offs: longer lease term, fewer cheques, or minor upgrades in exchange for a softer increase

• Document everything: notices, acknowledgements, and agreed renewal terms

Market insight: why this matters for Dubai’s rental market direction

DLD positioned the Smart Rental Index as a tool to enhance transparency and standardize rental assessments across Dubai, including key areas and free zones. In practice, it also signals a continued push toward data-driven pricing—which can reduce arbitrary increases and make renewals more predictable when both parties rely on the same reference system.

If you’re relocating to Dubai or investing in a rental property, understanding how renewals are regulated is part of protecting your cash flow (as a landlord) or your housing budget (as a tenant).

Conclusion: In 2026, smart renting in Dubai starts with the Smart Rental Index: check eligibility, confirm the 90-day notice window, and negotiate from a position of clarity. If you want help navigating renewals, evaluating rental yields, or choosing the right Dubai neighborhood for your budget, BrokeryHero can guide you with on-the-ground market insight.