Dubai's new rental index will be based on a rating system for each building, and landlords may have to renovate or upgrade their properties to justify rent increases.
The Dubai Land Department on Thursday launched a new smart rental index with a classification and a rating system from one to five stars for residential buildings, based on more than 60 criteria including its location, sustainability factors, building security, age and amenities.
“There is a certain weightage for the building classification and if somebody wants to increase the rating from three to four or four to five to increase the value, they have to do renovation to raise the classification,” Majid Al Marri, chief executive of real estate registration at the DLD, said.
“We want to encourage all owners to improve the quality of the building and to align with government regulations for safety, security, civil defence, Dubai police requirements and periodical maintenance. All of this is related to building classification.”
The new index is expected to reduce disputes between tenants and landlords and support the real estate market with more leases and new investment. “It also creates a sustainable and balanced real estate environment and meets the needs of tenants and landlords,” Mr Al Marri added.
The new index can be updated at any time, unlike its predecessor, which was updated yearly. The old index was based on zones or districts, while the new one focuses on each building by using AI technology and covers all areas in Dubai including freehold and non-freehold areas.
Currently, the rating system is applied only to residential buildings. The DLD plans to include commercial, retail and industrial buildings in the future.
In 2024, the number of registered leases rose 8 per cent annually to more than 900,000, “reflecting growing confidence in Dubai’s real estate sector”, Mr Al Marri added. Officials expect the index to reduce disputes between landlord and tenants by more than 20 per cent.
“Today we want everyone to benefit, whether the tenant, owner or the market … We tried to create balance between three parties.” Mr Al Marri also added that rental increases will be based on the old system, Decree No 34 of 2013 and the “system will not change the percentages”.
The owner could notify the tenant to prepare financially to keep up with any change, he added. Owners can ask for a building to be evaluated at any time for an increase in the rating.
The old index gave tenants and landlords a ballpark figure of a property's worth per year, largely based on average prices for that area in the past year or two. The Real Estate Regulatory Authority’s rental index was last recalibrated on March 1.
Rents have become a tug of war between tenants and landlords due to surging demand and a population boom. Rents in Dubai increased in the third quarter of 2024 for the 15th consecutive quarter and by 18 per cent annually, property consultancy Cushman and Wakefield Core said in November.
Apartment rents increased by 19 per cent annually, while villa rents recorded a more moderate increase of 13 per cent, the research found. There has also been a continued increase in lease renewals, which rose by 16 per cent in the third quarter.
Housing is likely to remain the “key determinant of Dubai’s inflation metric”, Emirates NBD bank said last month. Average annual rents in the city were up 20.8 per cent in November, it found.
“The new rental index will add a further layer of transparency to the Dubai market, providing additional data and granularity for landlords and tenants alike, and allowing a more accurate assessment of unit level market rents,” Matthew Green, head of research at CBRE Mena, said.
“This is becoming increasingly important in a maturing market where individual property upgrades and renovations have become very common, particularly across older freehold areas of the city, including the likes of the Springs, Lakes, Meadows, and parts of Palm Jumeirah.”
Mario Volpi, head of brokerage at Novvi Properties, said the new system will “add balance and transparency to the whole rental market” and “take into consideration not just old rental contracts but new ones as well”.
“Currently we are in a landlords' market, so tenants will possibly feel the pinch at their next renewal, but this will change once we get to a tenants' market once again,” said Mr Volpi. “The market is cyclical, so this will happen once rents start to drop, but nobody can predict when this will happen. With transparency and this rebalancing, all parties will be treated fairly depending on the market place of the time.”
The DLD's new rental index is a “transformative milestone for the emirate’s real estate market”, said Farooq Syed, chief executive of Springfield Properties. “This policy ensures market stability by tying rental values directly to property quality, providing tenants with fairer pricing while encouraging landlords to invest in improvements. Such measures foster tenant satisfaction and enhance the overall quality of the rental market.”
Similarly, Harris Hiscoe, head of leasing at Espace Real Estate, called the DLD’s new rental index “a game-changer for the rental market and a long-overdue shift toward fairness and transparency”.
“For tenants, it’s a relief – if you’re living in an older building that hasn’t been properly maintained, you won’t be stuck paying the same as someone in a brand new, high-end development nearby. And for landlords, especially those who’ve invested in renovations or upgrades, this is a chance to see those efforts reflected in rental valuations,” he added.
MATCH INFO
AC Milan v Inter, Sunday, 6pm (UAE), match live on BeIN Sports
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if you go
The flights
Etihad and Emirates fly direct from the UAE to Seoul from Dh3,775 return, including taxes
The package
Ski Safari offers a seven-night ski package to Korea, including five nights at the Dragon Valley Hotel in Yongpyong and two nights at Seoul CenterMark hotel, from £720 (Dh3,488) per person, including transfers, based on two travelling in January
The info
Visit www.gokorea.co.uk
Juliot Vinolia’s checklist for adopting alternate-day fasting
- Don’t do it more than once in three days
- Don’t go under 700 calories on fasting days
- Ensure there is sufficient water intake, as the body can go in dehydration mode
- Ensure there is enough roughage (fibre) in the food on fasting days as well
- Do not binge on processed or fatty foods on non-fasting days
- Complement fasting with plant-based foods, fruits, vegetables, seafood. Cut out processed meats and processed carbohydrates
- Manage your sleep
- People with existing gastric or mental health issues should avoid fasting
- Do not fast for prolonged periods without supervision by a qualified expert
'Laal Kaptaan'
Director: Navdeep Singh
Stars: Saif Ali Khan, Manav Vij, Deepak Dobriyal, Zoya Hussain
Rating: 2/5
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
About RuPay
A homegrown card payment scheme launched by the National Payments Corporation of India and backed by the Reserve Bank of India, the country’s central bank
RuPay process payments between banks and merchants for purchases made with credit or debit cards
It has grown rapidly in India and competes with global payment network firms like MasterCard and Visa.
In India, it can be used at ATMs, for online payments and variations of the card can be used to pay for bus, metro charges, road toll payments
The name blends two words rupee and payment
Some advantages of the network include lower processing fees and transaction costs
The biog
Name: Sari Al Zubaidi
Occupation: co-founder of Cafe di Rosati
Age: 42
Marital status: single
Favourite drink: drip coffee V60
Favourite destination: Bali, Indonesia
Favourite book: 100 Years of Solitude
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
What can victims do?
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Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
The bio
Favourite book: Peter Rabbit. I used to read it to my three children and still read it myself. If I am feeling down it brings back good memories.
Best thing about your job: Getting to help people. My mum always told me never to pass up an opportunity to do a good deed.
Best part of life in the UAE: The weather. The constant sunshine is amazing and there is always something to do, you have so many options when it comes to how to spend your day.
Favourite holiday destination: Malaysia. I went there for my honeymoon and ended up volunteering to teach local children for a few hours each day. It is such a special place and I plan to retire there one day.
Roll of honour 2019-2020
Dubai Rugby Sevens
Winners: Dubai Hurricanes
Runners up: Bahrain
West Asia Premiership
Winners: Bahrain
Runners up: UAE Premiership
UAE Premiership
}Winners: Dubai Exiles
Runners up: Dubai Hurricanes
UAE Division One
Winners: Abu Dhabi Saracens
Runners up: Dubai Hurricanes II
UAE Division Two
Winners: Barrelhouse
Runners up: RAK Rugby
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The biog
Favourite car: Ferrari
Likes the colour: Black
Best movie: Avatar
Academic qualifications: Bachelor’s degree in media production from the Higher Colleges of Technology and diploma in production from the New York Film Academy
What is the FNC?
The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning.
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval.
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
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Sarfira
Director: Sudha Kongara Prasad
Starring: Akshay Kumar, Radhika Madan, Paresh Rawal
Rating: 2/5
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Results
5pm: Maiden (PA) Dh 80,000 (Turf) 1,400m. Winner: Al Ajeeb W’Rsan, Pat Dobbs (jockey), Jaci Wickham (trainer).
5.30pm: Maiden (PA) Dh 80,000 (T) 1,400m racing. Winner: Mujeeb, Fabrice Veron, Eric Lemartinel.
6pm: Handicap (PA) Dh 90,000 (T) 2,200m. Winner: Onward, Connor Beasley, Abdallah Al Hammadi.
6.30pm: Sheikh Zayed bin Sultan Al Nahyan Jewel Crown Prep Rated Conditions (PA) Dh 125,000 (T) 2,200m. Winner: Somoud, Richard Mullen, Jean de Roualle.
7pm: Wathba Stallions Cup Handicap (PA) Dh 70,000 (T) 1,600m. Winner: AF Arrab, Tadhg O’Shea, Ernst Oertel.
7.30pm: Handicap (TB) Dh 90,000 (T) 1,400m. Winner: Irish Freedom, Richard Mullen, Satish Seemar.
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Indoor Cricket World Cup
Venue Insportz, Dubai, September 16-23
UAE squad Saqib Nazir (captain), Aaqib Malik, Fahad Al Hashmi, Isuru Umesh, Nadir Hussain, Sachin Talwar, Nashwan Nasir, Prashath Kumara, Ramveer Rai, Sameer Nayyak, Umar Shah, Vikrant Shetty
THE BIO
Favourite book: ‘Purpose Driven Life’ by Rick Warren
Favourite travel destination: Switzerland
Hobbies: Travelling and following motivational speeches and speakers
Favourite place in UAE: Dubai Museum
Essentials
The flights
Emirates and Etihad fly direct from the UAE to Geneva from Dh2,845 return, including taxes. The flight takes 6 hours.
The package
Clinique La Prairie offers a variety of programmes. A six-night Master Detox costs from 14,900 Swiss francs (Dh57,655), including all food, accommodation and a set schedule of medical consultations and spa treatments.
What it means to be a conservationist
Who is Enric Sala?
Enric Sala is an expert on marine conservation and is currently the National Geographic Society's Explorer-in-Residence. His love of the sea started with his childhood in Spain, inspired by the example of the legendary diver Jacques Cousteau. He has been a university professor of Oceanography in the US, as well as working at the Spanish National Council for Scientific Research and is a member of the World Economic Forum’s Global Future Council on Biodiversity and the Bio-Economy. He has dedicated his life to protecting life in the oceans. Enric describes himself as a flexitarian who only eats meat occasionally.
What is biodiversity?
According to the United Nations Environment Programme, all life on earth – including in its forests and oceans – forms a “rich tapestry of interconnecting and interdependent forces”. Biodiversity on earth today is the product of four billion years of evolution and consists of many millions of distinct biological species. The term ‘biodiversity’ is relatively new, popularised since the 1980s and coinciding with an understanding of the growing threats to the natural world including habitat loss, pollution and climate change. The loss of biodiversity itself is dangerous because it contributes to clean, consistent water flows, food security, protection from floods and storms and a stable climate. The natural world can be an ally in combating global climate change but to do so it must be protected. Nations are working to achieve this, including setting targets to be reached by 2020 for the protection of the natural state of 17 per cent of the land and 10 per cent of the oceans. However, these are well short of what is needed, according to experts, with half the land needed to be in a natural state to help avert disaster.