The Abu Dhabi Real Estate Centre (ADREC) announces a temporary freeze on rental increases for residential, commercial and industrial tenancy contract renewals. The decision is expected to improve market stability and provide protective measures for tenants from sudden rental increases.
Under current Abu Dhabi law, landlords and property management companies may increase the rent by up to 5% annually, if they inform tenants with a minimum two months before contract renewal.
The Abu Dhabi Municipality uses the Tawtheeq system to have a record of tenancy contracts and data related to the property being leased, providing legally binding records to protect both tenants and landlords. It is compulsory for everyone to do while registering and attesting all residential and commercial tenancy contracts.
In 2024, Abu Dhabi launched its first official rental index for the capital. The platform which serves both tenants and landlords, it’s operated to enhance market transparency, provide indicative rental values, and provide support to the stability of the capital’s growing real estate market.
Industry experts expect that freezing rental increases supplies greater financial certainty for families, residents and businesses, especially given the close dynamic between rental costs, living expenses and operational expenditures. The measure is also predicted to help ease pressures as a result from higher housing costs, which are a large component of the overall cost of living.
Simultaneously the ruling requests property owners and property management companies to follow current rental values, enhancing transparency and clarity in contractual relationships while aiming to reduce disputes related to rent increases during renewals or the signing of new lease agreements.
The measure is reflective of the regulatory role played by ADREC in monitoring the market and ensuring a balanced approach, which accounts for the interests of all stakeholders and supporting the sustainability of the real estate sector.
As Abu Dhabi continues to adopt regulatory policies with the aim of balancing tenant protection with maintaining the attractiveness of real estate investment, it forms part of a wider vision to improve the quality of life and reinforce the emirate’s position as one of the region’s most stable and resilient real estate markets.
