Dubai’s New Star-Rated Rental System: A Game Changer for Tenants and Landlords

Dubai’s real estate landscape is undergoing a significant transformation with the introduction of a new digital rental index that utilizes a star-rating system for buildings. Launched by the Dubai Land Department (DLD) on January 2, 2025, this innovative approach aims to create a fairer and more transparent rental market for both tenants and landlords. Understanding the New Rental Index The new rental index marks a departure from the traditional zone-based pricing model. Instead of setting rents based solely on geographic location, the star rating system assesses each building individually. This rating is based on over 60 criteria, including the building’s age, quality of finishes, maintenance standards, and available amenities. The system allows for real-time updates, ensuring that rental prices reflect current market conditions accurately. How It Works Star Ratings: Buildings are assigned a star rating from one to five stars based on their condition and facilities. This rating directly influences the maximum allowable rent. Real-Time Pricing: The index provides instantaneous updates to rental prices as market conditions change, enhancing transparency. Building-Specific Assessment: Unlike previous models that grouped buildings by district, this system evaluates each property on