ABU DHABI: Tenants in Abu Dhabi will not face rent increases on renewed property contracts for now, after the Abu Dhabi Real Estate Centre announced a 0% rent hike for all properties in the emirate.
The decision applies to residential, commercial, and industrial tenancy contract renewals. This means apartments, villas, shops, offices, warehouses, and other rented properties covered by tenancy contracts will have renewals processed with no increase during the period of the measure.
Contents
0% Increase Until Further Notice
According to ADREC, all tenancy contract renewals will be processed at a 0% increase. The authority also confirmed through an email to residents that the usual permitted annual rent hike of 5% has been updated to 0% until further notice.
This gives tenants more short term stability, especially those preparing for renewal. For many residents and business owners, rent is one of the biggest monthly expenses. A freeze can help households plan their budget and help companies control operating costs.
Rule Also Covers Previously Rented Units
ADREC said that any new tenancy contract for a previously rented unit must be offered at the same rental value as the previous contract.
This means landlords cannot raise the rent for a unit simply because a new tenant is moving in, as long as the unit was previously rented and falls under the current measure.
For example, if a flat was rented at a certain amount under the last contract, the next contract for that same unit should follow the same rental value while the freeze is in effect.
Part of Abu Dhabi’s Market Reforms
ADREC said the move is part of its effort to keep improving Abu Dhabi’s real estate market and support a more attractive property sector.
Abu Dhabi has had rent increase rules since 2006, when it first introduced a 7% cap. This was later reduced to 5%. In 2024, the emirate also launched its first official rental index to give tenants and landlords a clearer guide on rental values.
What Tenants Should Do Now
Tenants with upcoming renewals should check their contract details and confirm the rental amount before signing. If there is a proposed increase, they may refer to ADREC’s latest announcement and ask for clarification from the landlord or property manager.
