Rental index
The rental index is the Dubai Land Department's official benchmark of market rents, used to decide whether and by how much a landlord may raise rent at renewal.
What Rental index means for a buyer
Dubai limits rent increases for sitting tenants. The mechanism is the rental index, approved by RERA, which gives the average rent for similar property in the same area. When a tenancy comes up for renewal, the landlord may raise the rent only if the current rent is well below that benchmark, and only by a set amount.
The bands come from Decree No. 43 of 2013:
- rent up to 10% below the index average: no increase
- 11% to 20% below: up to 5%
- 21% to 30% below: up to 10%
- 31% to 40% below: up to 15%
- more than 40% below: up to 20%
Since January 2025 the benchmark has been the Smart Rental Index, which assesses rents at the level of the individual building and its quality, not just the district. The result for any property can be checked with the calculator on the DLD website or in Dubai REST, using the Ejari details.
An increase also needs notice: the landlord must tell the tenant at least 90 days before the contract expires, or the rent stays as it is for the next term.
Why investors should care. The index protects tenants in a rising market, so a let property's income adjusts to market rents slowly; a home bought with a tenant in place may earn less than the advertised market rent for years. It sets a ceiling, not a floor: when rents fall, tenants negotiate down or move. Model net yield on the rent in the contract. The index applies to Dubai only.
Guides that use this term
Where Rental index comes up in practice, with the costs, rules and steps around it.
Questions about the buying process?
An adviser can explain how this applies to the property you're considering.
- Current price list and availability, direct from the developer
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- One salaried adviser, not on commission, from first call to handover
