Abu Dhabi confirms freeze on 5% rent increases on these properties for now

Dubai: Abu Dhabi provided further details on the emirate’s newly announced rental freeze, confirming on Wednesday that the annual rental increase cap has been temporarily removed while setting out how rents will be calculated during the period.

The rental increase percentage was updated from 5% to 0% per annum on residential, commercial, and industrial properties across the Emirate for a temporary short period, the Abu Dhabi Real Estate Centre (ADREC) said in a statement on Wednesday.

This comes a day after ADREC revealed the suspension of rent increases until further notice, preventing landlords from raising rents on lease renewals.

How rent will now be decided

The update also clarifies how rental values will be determined while the policy remains in force. According to the government, all lease renewals and new agreements must reference the rental value recorded in the property’s most recent registered tenancy contract.

“All lease renewals and new agreements will reference the rental rate from the property’s last registered Tawtheeq contract,” said ADREC, which will also oversee implementation and compliance and engage with relevant stakeholders to ensure the directive is upheld across the emirate.

“Tenants and businesses who believe the directive is not being observed are encouraged to contact ADREC through its official channels: the website adrec.gov.ae, the Centre’s dedicated customer service line, and the official email address,” it added.

Why the rent freeze was announced

The temporary measure has been introduced as Abu Dhabi’s rental market continues to experience strong demand and limited supply, ADREC said in a statement.

“With demand consistently exceeding supply over the past few years, occupancy rates have reached record highs. This demand has driven new lease prices up 15% across Abu Dhabi and 23% in investment zones compared to last year, impacting housing continuity for many residents,” it said.

For tenants, the latest update essentially provides clearer guidance on what the rental freeze means in practice. Residents renewing their leases should not face any increase in rent while the measure remains in effect, while businesses renewing commercial leases will receive the same protection.