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Abu Dhabi Temporarily Freezes Rent Hikes

Officials say the freeze will protect tenants from steep new‑lease price rises.

Overview

  • The Abu Dhabi Real Estate Centre set the annual rent increase cap to 0% on June 2, requiring lease renewals and new tenancies for previously rented units to use the last registered Tawtheeq rent.
  • The directive applies across residential, commercial and industrial leases and instructs the Tawtheeq tenancy‑registration system to block any attempt to register a higher renewal rate.
  • ADREC will oversee implementation and asks tenants to report breaches through its website and customer service channels.
  • The move gives immediate cost certainty for many renters and businesses by locking approved rental values, while also creating a vacancy‑protection effect that prevents landlords from re‑pricing vacated units.
  • Officials gave no end date and offered no guidance on retrospective rebates for contracts renewed before the freeze, and the policy builds on Abu Dhabi’s 2024 rental index and prior 5% cap framework.