New rent rules begin to benefit tenants

Dubai’s new smart rental index is giving tenants a powerful tool to negotiate fair rent increases with their landlords, ensuring that adjustments align with newly established guidelines.

- Waad Barakat

The Dubai Land Department (DLD) recently introduced this index to create a fairer rental landscape, linking property ratings to rental valuations. The index categorises residential buildings from one to five stars based on more than 60 criteria, influencing permissible rent increases.

For tenants like Mohammed S, this new system is already making a difference. Mohammed recently received a 16-per cent hike notice for his two-bedroom apartment, which would raise his rent from Dh54,000 to Dh65,000 — marking an increase of Dh11,000.

"The real estate company sent me an e-mail saying it would be raised to Dh65,000. However, after checking the rent index, I found that they could only increase my rent by Dh2,700, which brings it to about Dh56,700. I immediately wrote to my real estate agent and attached a screenshot. I intend to pursue this matter until they bring the rent in line with the index," he said.