Abu Dhabi has frozen rent increases on all residential, commercial, and industrial properties until further notice.
Abu Dhabi has placed a temporary freeze on all rent increases across the emirate. The Abu Dhabi Real Estate Centre, known as ADREC, announced the measure on its official social media channels on Tuesday, June 2. It took effect immediately and applies until further notice.
“Your rent stays the same,” ADREC posted on X. The freeze covers residential, commercial, and industrial properties. A source confirmed to The National that it applies to all areas of Abu Dhabi with no exceptions.
Every tenancy contract renewal will be processed at a zero percent increase. Landlords cannot raise rent at renewal for the duration of the freeze. The next contract carries the same figure as the last one.
The rule also applies to new contracts. ADREC said any new tenancy contract on a previously rented unit must be offered at the same rental value as the preceding contract. If a tenant moves out and a new one moves in, the rent cannot rise for the incoming tenant. The value stays locked to the last contract.
ADREC issued a circular to confirm the change. The circular stated the zero percent rent increase would remain in place until further notice. No end date has been set.
ADREC said the rental increase percentage has been updated from 5 percent to 0 percent per annum for a temporary period. The regulator linked the move to its work on improving the Abu Dhabi real estate market.
Abu Dhabi Rent Cap Before the Freeze
Abu Dhabi law previously allowed landlords to raise rent by up to 5 percent each year. They had to notify tenants at least two months before renewal. That annual cap has been in place since 2016.
The freeze lowers that ceiling to zero. For as long as the measure holds, the 5 percent allowance is paused. Tenants renewing during this period will not see the standard increase permitted for nearly a decade.
The National reported that the freeze comes as many people in the UAE deal with rising prices. Some residents have faced job losses or salary reductions linked to the impact of Iran’s war.
Abu Dhabi’s rental market remained tight last year, driven by strong population growth and limited housing stock. One market report cited by The National estimated that average residential rents rose 11 percent during 2025.
Abu Dhabi has used a rent freeze before. During the pandemic in 2021, Abu Dhabi Ports froze rents for all businesses in its Industrial Cities and Free Zone cluster. The move benefited more than 1,400 companies.
Abu Dhabi Rental Market Background
Abu Dhabi launched its first official rental index for the capital in 2024. The platform serves both tenants and landlords. It is designed to increase market transparency, provide indicative rental values, and support stability in the capital’s real estate market.
The new freeze applies on top of that framework. Tenants in Abu Dhabi will not face rent increases at renewal, and incoming tenants on previously rented units are charged the same rate. The freeze covers homes, offices, shops, and industrial space.
ADREC has not said how long the measure will last. The language in its announcement and circular describes a temporary step rather than a permanent change. The 5 percent cap remains the standing law and could return once the freeze lifts.
Residents renewing contracts in the coming weeks should keep their previous contract value on hand. That figure is the reference point for any renewal during the freeze. Anyone signing a new lease on a previously rented unit will be charged the same rate the last tenant paid.
Stay tuned for more updates!
