Dubai to Launch Comprehensive ‘Smart Rental Index’ Including Commercial Properties by 2025
Dubai’s Land Department plans to expand its ‘Smart Rental Index’ to include commercial properties, according to Majid Al Marri, Director of the Real Estate Registration Sector C at the Dubai Land Department. Expected to launch in the first quarter of 2025, the ‘Smart Rental Index’ currently encompasses residential units, offering a comprehensive outlook on the city’s rental market.
The new index will classify each building and consider factors such as existing and new rental agreements, area-wise rentals, and other relevant elements to provide a robust assessment of the commercial property market. A similar approach will be adopted for the upcoming commercial rental index.
To mitigate rental hikes, Dubai aims to enhance its commercial property stock by encouraging property owners to upgrade their assets. Buildings will be rated from one to five stars based on factors like age, condition, maintenance, and other aspects. This initiative is particularly timely, given the surge in foreign companies entering the Emirate, driving demand for prime office spaces.
Dubai’s A-grade and B+ office spaces have witnessed limited supply, contributing to a recent increase in rents and prices. To address this imbalance, Dubai has announced plans to deliver approximately 0.37 million square feet of office space in the first half of 2024 and an additional 0.35 million square feet by the third quarter. The Land Department regularly conducts studies to stay informed about the real estate market’s developments.
