Abu Dhabi Suspends Rental Increases: What Tenants Need to Know

Abu Dhabi has temporarily suspended rental increases across residential, commercial and industrial properties, with the measure taking effect immediately. The announcement was made by the Abu Dhabi Real Estate Centre (ADREC) on June 2, bringing relief to tenants across the emirate.

The temporary measure applies throughout Abu Dhabi and will remain in place until further notice. The decision affects both tenancy contract renewals and certain new tenancy agreements involving previously rented properties.

Zero Increase for Contract Renewals

Under the new directive, all existing tenancy contracts that come up for renewal will be processed with a 0% increase. This means rental values will remain unchanged when tenants renew their contracts during the period in which the measure is active.

The freeze applies equally across residential, commercial and industrial property categories, ensuring that renewals are completed at the same rental value currently recorded in the tenancy agreement.

Rules for Previously Rented Properties

The announcement also covers new tenancy contracts for units that have already been rented in the past.

Any new tenancy agreement for a previously rented property must be issued at the same rental value as the preceding contract. The rental amount recorded in the most recent tenancy agreement will serve as the reference value for the new contract.

This provision effectively freezes rental increases not only for existing tenants renewing their leases but also for new occupants leasing previously rented units.

Measure Covers Multiple Property Segments

The rent freeze has been introduced across all major property categories in Abu Dhabi.

• Residential properties
• Commercial properties
• Industrial properties

By applying the measure across these segments, the authorities have ensured a uniform approach to rental pricing during the temporary period.

Effective Immediately Until Further Notice

ADREC confirmed that the policy came into force immediately upon announcement. No timeline has been specified for when the measure may be lifted, and the freeze will continue until further notice from the authority.

The announcement states that rental values for renewals and eligible new contracts must remain aligned with the most recent registered tenancy contract for the same property.

Key Takeaways

The temporary measure introduces a complete freeze on rental increases across Abu Dhabi's residential, commercial and industrial property sectors. Existing tenancy renewals will be processed without any increase, while new contracts for previously rented units must match the rental value of the preceding agreement. The policy is effective immediately and will remain in force until further notice from ADREC.

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