As 2025 begins, Dubai’s real estate market welcomes an updated Rental Index, designed to bring greater accuracy and transparency to calculating average rental rates and determining approved rental increases. This revamped tool introduces advanced search capabilities, promising smoother relationships between landlords and tenants through fairer rental assessments.Whether you are searching properties for rent in Dubai or planning to list your property to rent, this is a must-read for you.
Key Features of the New Rental Index
1. Property-Specific Searches
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Direct Property Data Access: You can now retrieve rental information specific to a property using its Ejari number or DEWA premises number.
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Area-Specific Searches: If the exact property details aren’t available, you can still perform searches by area, specifying the building or project for accurate results.
2. Enhanced Building Classifications
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Criteria-Based Evaluations: The index assesses properties based on various criteria, including location, quality, amenities, and facilities.
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Building Ratings Integration: With the addition of building ratings, rental rates are now tailored to specific properties, delivering a more realistic average.
3. Exclusions and Limitations
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Excluded Elements: Furnished or upgraded properties and utility costs are not factored into the index calculations.
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Streamlined Calculations: By focusing on base rental rates, the process becomes more straightforward and objective.
How the New Index Improves Accuracy
The updated rental index eliminates the inefficiencies of the previous “one size fits all” model, offering detailed property-specific data that ensures more precise rental calculations. This enhanced approach minimises disputes, promotes fairness in rental agreements, and aligns rental expectations with actual market conditions.
The Shift from Generalized to Specific Data
Under the previous system, rental rates were generalised, often failing to account for the unique attributes of individual buildings. For example, a two-bedroom apartment in Dubai Marina was broadly assigned an average annual rent of AED 120,000 to AED 140,000.
The updated index now distinguishes between buildings within the same area, factoring in their specific characteristics such as location, quality, and amenities.
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The Torch Tower, Dubai Marina: The average annual rent for a two-bedroom apartment is now calculated at AED 131,000 to AED 160,000.
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Marina Gate 1: For a similar two-bedroom apartment, the rent is now determined at AED 172,000 to AED 211,000.
This differentiation ensures that properties in prime locations or with superior amenities are accurately valued, while those with fewer features are not overestimated.
Benefits for Tenants and Landlords
For Tenants
Tenants benefit from fair and realistic rental rates based on the specific property they rent, avoiding overcharges tied to generalised data. Learn more on renting a property in Dubai
For Landlords
Landlords can justify rental rates more effectively, leveraging transparent and detailed data to support their pricing. Learn more on listing your property in Dubai
Strengthening Landlord-Tenant Relationships
With precise rental rate calculations reflecting real market conditions, the new rental index reduces the potential for disputes. This improved accuracy fosters trust and aligns rental expectations for both parties, enhancing landlord-tenant relationships in the long run.
Maximise Your Property’s Rental Potential with Exclusive Links
At Exclusive Links, we pride ourselves on providing expert property management services in Dubai. As a fully licensed property management division, we are here to help you:
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Maximise your rental potential with strategic pricing.
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Offer the best care options for your property to ensure sustained value.
If you’re a landlord looking to navigate the rental market effectively or a tenant seeking guidance, get in touch with us today.
The updated rental index is set to be a game-changer for Dubai’s real estate market in 2025 and beyond. With this property-specific focus, enhanced transparency, and fairness, this new index calculator benefits everyone involved. Stay informed, adapt to the changes, and let Exclusive Links support you in making the most of these updates.
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