Dubai Rental Index 2026: Dubai’s rental market remains active in 2026, with the Dubai Land Department (DLD) continuing to use its Smart Rental Index to assess rental values and applicable rent increases.

The latest DLD figures show that 118,385 new rental contracts and 135,607 renewal contracts were recorded in the first quarter of 2026. The total value of rental contracts reached AED 32.2 billion, while cancelled rental contracts declined by 25%.

What Is the Dubai Smart Rental Index?

DLD launched the Smart Rental Index 2025 on 2 January 2025. The system uses artificial intelligence and an advanced building-classification system to determine rental values.

The classification considers factors such as:

  • Technical and structural characteristics

  • Quality of finishes

  • Maintenance

  • Location

  • Spatial value

  • Services and facilities

  • Cleanliness

  • Parking management

The index covers residential areas across Dubai, including key areas, special development zones and free zones. DLD says the system is continuously updated to reflect changes in the real estate market.

How Does the Dubai Rental Index Work?

The DLD Rental Index service allows landlords and tenants to check the average rental value and calculate the applicable rental increase.

To use the service, users enter:

  • Tenancy contract expiry date

  • Property type

  • Region

  • Number of rooms

  • Current annual rent

The result is provided immediately through the DLD service. The service is available through the DLD website, Ejari system, Dubai REST app and DubaiNow app.

How Much Can Rent Increase in Dubai?

DLD's Smart Rental Index uses the difference between the current rental value and the average market rent to determine the permitted increase.

The current framework provides for increases ranging from 0% to 20%:

Current rent compared with average market rent Maximum increase
Less than 10% below average 0%
11%–20% below average 5%
21%–30% below average 10%
31%–40% below average 15%
More than 40% below average 20%

These percentages are based on the rental-increase framework referenced by DLD under Decree No. 34 of 2013.

Dubai Rental Index 2026: Is the Rental Index Mandatory?

DLD states that the Rental Index is indicative for a new lease.

However, when a landlord and tenant disagree over the rental increase during a renewal, the index becomes relevant to determining the applicable rental increase.

90-Day Notice for Rent Changes

DLD's FAQ states that if either party wants to change the rental value or other contract conditions, they must notify the other party at least 90 days before the contract expires, unless both parties agree otherwise.

This means tenants should check the applicable rental value and any proposed increase before the renewal date rather than waiting until the existing contract expires.

What Is New in Dubai's Rental Market in 2026?

DLD's Q1 2026 figures show continued rental-market activity.

During the first quarter:

  • 118,385 new rental contracts were registered.

  • 135,607 contracts were renewed.

  • Rental contracts were worth AED 32.2 billion in total.

  • Cancelled rental contracts fell by 25%.

The figures cover Q1 2026 only and should not be treated as a full-year 2026 total.

What Does the Smart Rental Index Consider?

The Smart Rental Index does not rely only on the current rent of a property. DLD says rental values are determined using factors including the property's location, technical classification, services and prevailing market conditions.

The building classification also considers construction quality, architectural design, energy efficiency, services and strategic location. DLD says its system uses artificial intelligence, data analytics and registered rental-contract data.

Can a Building's Classification Change?

Yes. According to DLD's FAQ, an owner or landlord can request an update to a building's classification through the Dubai Land Department.

What About Commercial Properties?

The current Smart Residential Rental Index focuses on residential buildings.

DLD says commercial and industrial rental indexes are under development and will be announced after completion.

Dubai Rental Index 2026: Key Takeaway

For tenants and landlords in Dubai, the Rental Index remains an important reference when reviewing rental values and potential increases.

The Smart Rental Index combines AI, building classification and market data to determine rental values. In 2026, DLD's latest available figures show continued rental activity, with 253,992 new and renewed contracts recorded in Q1 and AED 32.2 billion in rental-contract value.

For an individual property, however, the applicable rental increase depends on the property's details and the information entered into DLD's official Rental Index service.