Dubai’s real estate market is set for a major shift with the launch of the Smart Rental Index in January. Announced by the Dubai Land Department, the new index aims to eliminate arbitrary rent hikes and ensure fair pricing for new and old buildings by focusing on property-specific data rather than broader area averages.

Experts highlight that the new smart rental index will address long-standing issues, such as tenants in older buildings paying rents similar to modern properties with superior amenities. By incorporating metadata through platforms like Makani and Ejari, the index enables precise, unit-level comparisons, ensuring fairer pricing models in areas with mixed building qualities like Downtown and Business Bay.

Experts also emphasize the role of AI in refining rental evaluations by considering factors like size, views, and amenities that are currently overlooked. The index’s ability to differentiate between new and renewed rental contracts is expected to reflect market conditions more accurately, benefiting tenants and landlords.

Experts remark that the index will enhance transparency by providing real-time data on rental prices and availability. Advanced tools, such as legal checks and market trend analysis, could further empower tenants with insights, stabilize rental prices, reduce disputes, and create a fairer ecosystem for all stakeholders.