Dubai rental index explained

What the rental index is

The rental index is an official reference of average annual rents in Dubai, maintained by DLD. It groups properties by area, type (apartment or villa) and size or bedroom count, and gives an average rent for each group. It is not a valuation of your specific home; it is a benchmark.

Its main legal use is at renewal. Decree No. 43 of 2013 links the maximum rent increase a landlord can apply to how far the current rent sits below the index average. Since January 2025, DLD's Smart Rental Index also takes building classification and star ratings into account. See Smart Rental Index building ratings.

How increases are calculated

Compare your current rent with the index average for a similar property. The decree sets these bands:

• Up to 10% below the average: no increase allowed.
• 11–20% below: up to 5% increase.
• 21–30% below: up to 10%.
• 31–40% below: up to 15%.
• More than 40% below: up to 20%.

If the current rent is at or above the average, no increase applies. The calculator does this arithmetic for you.

Using the DLD rental index calculator

The calculator is on the DLD website and in the Dubai REST app. You will typically need:

• The area and, where asked, the building or project.
• Property type and number of bedrooms.
• The current annual rent on the Ejari-registered contract.
• Sometimes the Ejari or contract number, or the property's unit details.

The result shows the average rent for comparable properties and the permitted increase percentage. Save or screenshot the result with the date, because the index is updated over time and you may need it as evidence.

The notice rule that sits alongside it

The index caps the increase, but the landlord must still give at least 90 days' notice before the contract expires to change the tenancy terms, including rent. A permitted increase that was not notified in time generally cannot be imposed at that renewal. The 90-day renewal notice explained guide covers this in detail, and rent increase rules in Dubai puts both rules together.

What the index does not tell you

• New lettings. When a unit is let to a new tenant, rent is agreed freely between the parties. The index caps renewals, not fresh contracts.
• Exact market value. Averages smooth over view, floor, condition and furnishing. A renovated unit and a tired one in the same building share a bucket.
• Live movement. The index updates periodically, so in a fast-moving market it can lag current asking rents.

For setting rent on a vacant unit, use the index as one input among several. See setting the right rent in Dubai.

Reading it as market data

Investors and analysts also use the index to compare areas and track broad trends. Treat it as a smoothed, official view. Pair it with Ejari-registered contract data and DLD transaction data for a fuller picture; our guide to reading DLD transaction data explains how. Do not treat index averages as achievable rent for a specific unit without checking comparable current listings.

When tenant and landlord disagree

Most disagreements are settled by both sides running the calculator and looking at the same result. If they still cannot agree, the Rental Dispute Centre handles cases. The filing fee is reported at 3.5% of annual rent, with a minimum of AED 500 and maximum of AED 20,000; check the current fee before filing. See the Rental Dispute Centre process.