Abu Dhabi Confirms Temporary Freeze On Select Rent Increases

The Abu Dhabi Real Estate Centre (ADREC) has confirmed a temporary suspension of the emirate's annual 5% rent increase cap for residential, commercial, and industrial properties. Under the revised measure, all tenancy renewals covered by the directive will be processed with a 0% rent increase, offering short-term relief to tenants across the emirate.

The clarification follows ADREC's earlier announcement regarding the temporary rental freeze. The authority has now provided additional details explaining that the policy applies not only to lease renewals but also to new tenancy agreements involving previously rented properties. During the period in which the measure remains effective, landlords must use the rental value recorded in the property's most recent registered tenancy agreement as the reference point.

How the New Rental Rule Will Work

According to ADREC, the rental amount specified in the property's most recent registered Tawtheeq contract will serve as the benchmark for all eligible lease transactions while the freeze remains in place. This means landlords cannot increase rents beyond the previously registered value, regardless of whether a tenant is renewing an existing contract or a new tenant is occupying a previously leased property.

The authority also stated that it will oversee the implementation of the directive and work with relevant stakeholders to ensure compliance across the emirate. Tenants and businesses that believe the rules are not being followed have been encouraged to contact ADREC through its official communication channels.

Move Aims to Support Market Stability

ADREC said the temporary measure has been introduced as Abu Dhabi's rental market continues to experience strong demand alongside limited housing supply. According to the regulator, rental values for new leases have increased significantly over the past year, with average new lease prices rising by 15% across Abu Dhabi and by 23% in designated investment zones.

The regulator believes that temporarily freezing rent increases will help maintain housing continuity for residents and provide greater certainty for businesses operating in the emirate. The measure applies across residential, commercial, and industrial properties and will remain in force until further notice.

• Annual rent increase cap has been temporarily revised from 5% to 0%.
• The rule applies to residential, commercial, and industrial properties.
• Both lease renewals and new agreements must use the last Tawtheeq rental value.
• ADREC will monitor implementation and handle tenant complaints.
• The measure will remain effective until a new directive is issued.

The announcement represents one of the most significant recent interventions in Abu Dhabi's rental market and is expected to provide short-term stability for tenants while the emirate continues to experience sustained demand for housing and commercial space.

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