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Dubai tenants using Smart Rental Index to negotiate rent reductions
Dubai tenants who signed leases during periods of stronger rental growth may now have a clearer basis for discussing renewal terms at a lower rate with their landlords
- PUBLISHED: Tue 16 Jun 2026, 8:15 AM
Dubai's Smart Rental Index is helping tenants negotiate their rents at lower rates after the softening of the market, say real estate industry executives.
The index also helped tenants when landlords increased rentals more than the market average rate and above the rate suggested by the Index.
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Launched by the Dubai Land Department in January 2025, the index is based on an advanced building classification system, taking into account each building's technical and structural characteristics, the quality of finishes and maintenance, the building's strategic location and its spatial value, as well as the level of services and facilities available, such as maintenance, cleanliness, and parking management.
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“The Index has given tenants significantly greater visibility into how rents are assessed. Renters can now access the same benchmark data used by landlords and quickly determine whether a proposed increase is aligned with current regulations and market conditions. Tenants who signed leases during periods of stronger rental growth may now have a clearer basis for discussing renewal terms with their landlords. Rather than relying solely on market anecdotes, both parties can refer to an official benchmark,” said Rohit Bachani, Co-Founder, Merlin Real Estate.
Rents increases have eased in some of the communities and others have seen a decline in the past few months due to new supply and
He added that the Index provided a recognised reference point in rental discussions and disputes.
"Conversations around renewals are often more straightforward and less contentious than they were previously. Over time, this greater transparency may contribute to improved tenant confidence and stronger residential stability across the market."
Alois Kugendran, CEO of Amaya & Co, said rents are falling in certain areas for the first time since the Smart Rental Index, as these communities experienced significant peaks, and it is a natural correction at the top end.
"Landlords now have a direct incentive to invest in and maintain the quality of their properties, because the condition and classification of a building directly impacts what they can charge. Previously, a landlord could benefit from rising area averages regardless of the state of their property. That's no longer the case. In the long run, this can only be a positive thing for the overall quality of rental properties in Dubai," he added.
New supply
Bachani added that apartment rents have eased modestly from their first-quarter peak, while villa rents remain higher year-on-year as the market is finding a new path of resilience after several years of strong growth.
"The moderation in rents is primarily being driven by new supply coming to market and a natural cooling in demand growth. However, the Index has changed the way rental adjustments are assessed and discussed. Renewal discussions that were once heavily reliant on negotiation are increasingly guided by a common reference point provided by the Dubai Land Department. This has improved transparency and given both landlords and tenants greater clarity around pricing expectations," he noted.
In that sense, the Index is further contributing to a more structured and mature rental market, where decisions are increasingly based on data rather than subjective perceptions.
Humaira Vaqqas, property consultant, Range International Property Investments, said the availability of additional inventory across several Dubai communities has also contributed to this trend, creating healthier competition among landlords and offering tenants more options than before.
"As a result, tenants are now in a stronger position to negotiate rental renewals and new lease agreements. The Smart Rental Index provides a transparent benchmark that helps tenants understand whether a proposed rental increase is justified," she added.
