UAE | Housing & Property
Abu Dhabi caps rent rise at 7%
A law by President His Highness Shaikh Khalifa Bin Zayed Al Nahyan has capped rent increases in Abu Dhabi at 7 per cent annually.
- The law covers properties leased for housing, industrial, trade or professional activities.
- Image Credit: Gulf News archive
Abu Dhabi: A law by President His Highness Shaikh Khalifa Bin Zayed Al Nahyan has capped rent increases in Abu Dhabi at 7 per cent annually.
Shaikh Khalifa, as Ruler of Abu Dhabi, issued law No. 20 of 2006, to regulate the landlord-tenant relationship, according to WAM.
The law covers properties leased for housing, industrial, trade or professional activities. It is applicable to existing contracts and those that are signed after this law takes effect.
The landlord and tenant shall adhere to the rent specified in the contract. If the contract duration is three years or less, a rent increase of no more than 7 per cent is allowed once every year.
The law stipulates a written tenancy contract and lays down obligations of the landlord and tenant.
A special committee will be formed to settle tenancy disputes. The committee is to be formed by a resolution by the Abu Dhabi Executive Council chairman. General Shaikh Mohammad Bin Zayed Al Nahyan, Abu Dhabi Crown Prince, Deputy Supreme Commander of the UAE Armed Forces and Chairman of the Abu Dhabi Executive Council, has issued resolution No. 42 of 2006 on the formation of the tenancy dispute settlement committee. He issued resolution No. 43 of 2006 on the appeals committee.
He also issued resolution No. 41 of 2006 aimed at simplifying procedures to settle tenancy disputes.
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