Business | General
Abu Dhabi extends legal safe period for tenancy contracts
No eviction for five years; rent hike ceiling set at 5%
- By Rayeesa Absal, Staff Reporter
- Published: 00:00 November 17, 2009
Abu Dhabi: Landlords cannot evict law-abiding tenants unless they complete a minimum of five years, as per a new rule announced by the Abu Dhabi government on Monday.
The legal protection period covering tenancy contracts in Abu Dhabi has been extended from four to five years, while the yearly rent increase will remain capped at five per cent, according to the decision.
General Shaikh Mohammad Bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces and Chairman of the Abu Dhabi Executive Council, issued the decision amending Article 20 of Law 6 for 2009.
The decision aims to rebalance and stabilise the property market through market mechanisms and demand-and-supply principles.
When the law (Law 20 for 2006) was first issued in 2006, for the regulation of property rent and landlord-tenant relationship in the emirate, tenants were granted three years of legal protection. This was extended earlier this year to four years. However, the legal protection shield will vanish if the tenant does not pay the rent, or resorts to illegal practices such as subletting or breaks any other rules. "In such cases, the landlord could file a case against the tenant at the court and the court will make the final decision."
Reasons for the landlord to request eviction include demolition or renovation of the building.
Committee constituted
The government has issued a decree to facilitate the setting up of a committee to study the economic and social dimensions of the legal regulation of tenancy contracts.
The committee will study the economic, social and financial effects of any amendments on tenancy contracts, the property market and offer and demand forces on all categories of residential units.
In addition, it will study all aspects related to imposing a rent cap and how it affects offer and demand and inflation rates. The committee will suggest necessary amendments to relevant legislations.
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