Market guide

Smart Rental Index building ratings

How Dubai's Smart Rental Index uses building classification and star ratings, what it means for renewals, and how tenants and landlords should check the result.

Introduced
January 2025, by DLD
New factor
Building classification and star rating
Still applies
Decree No. 43 of 2013 increase bands
How to check
DLD rental index calculator or Dubai REST

What changed

The traditional rental index grouped properties mainly by area, type and size. That meant a well-maintained building with strong facilities and an older, tired block nearby could share the same average rent. Since January 2025, DLD's Smart Rental Index adds a building layer: each building's classification and star rating feed into the benchmark.

The increase bands themselves still come from Decree No. 43 of 2013, explained in our Dubai rental index explained guide. What changed is the average your current rent is measured against.

What the ratings reflect

DLD has described the classification as considering the building's quality and services. In practice, factors such as overall condition, facilities, maintenance standards and location characteristics are relevant. DLD has not asked tenants or landlords to calculate ratings themselves; the rating sits behind the calculator result.

Because the methodology may be refined, avoid relying on summaries from social media. Read DLD's own rental index page for the current description.

In short, the rating is an input you can check but not adjust. What owners can influence over time is the real quality of the building itself.

What it means for tenants

If you live in a building with a lower classification, the benchmark may be lower than the broader area average, which can mean less room for an increase. In a higher-rated building, the benchmark may be higher.

The practical step is the same either way: run the calculator with your exact building and unit details before you respond to a renewal notice. Keep a dated copy of the result. If the landlord's figure differs, compare inputs line by line. Our renewing a tenancy in Dubai guide walks through the full renewal conversation.

What it means for landlords

For landlords, the building now matters more to renewal pricing. Owners in well-run buildings may see higher benchmarks; owners in buildings with maintenance problems may find the index limits increases.

That creates a real incentive to take part in owners' association matters and to watch how service-charge budgets are spent. See understanding service charge budgets. Remember too that any change to rent at renewal still needs at least 90 days' notice before expiry.

What it means for investors

When comparing buildings to buy, the Smart Rental Index adds one more signal of quality. Two buildings in the same community may carry different benchmarks, which affects how rents can move for sitting tenants over time.

It is not a substitute for inspection. Visit, check the common areas, read the Mollak service-charge history and look at how the building is managed. For rental pricing on a new letting, which the index does not cap, see setting the right rent in Dubai.

Checking your building's result

  • Open the rental index service on the DLD website or the Dubai REST app.
  • Enter the area, building or project, unit type and bedrooms, and your current annual rent.
  • Read the benchmark average and the permitted increase.
  • Save the result with the date.

If the calculator does not list your building, or the result looks wrong, contact DLD through its official channels rather than relying on an informal estimate. A property manager can also run this check for you; see tenancy renewal management.

Questions people ask

When did the Smart Rental Index start?

DLD introduced the Smart Rental Index in January 2025. It adds building classification and star ratings to the factors behind the rental benchmark.

Do the increase percentages change under the Smart Rental Index?

No. The maximum increase bands still follow Decree No. 43 of 2013. The building rating affects the average rent your current rent is compared with.

Can I see my building's star rating?

The rating is reflected in the calculator's benchmark. Check DLD's rental index page for what is currently displayed and how the classification is described.

Does the Smart Rental Index apply to new tenancies?

Like the original index, it caps increases on renewal. Rent for a brand new tenancy is agreed between landlord and tenant.

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