The Abu Dhabi government has introduced a major change to the emirate’s rental market by temporarily freezing annual rent increases. Under the new regulation, the previous 5% rent increase cap has been reduced to 0%, providing immediate financial relief to residential, commercial, and industrial tenants. The decision is effective immediately and will remain in place until further notice.

For tenants renewing their leases, this means landlords cannot increase the rent during the freeze period. The renewed tenancy contract must match the rental value recorded in the most recent registered Tawtheeq contract. This policy is designed to improve affordability, strengthen tenant confidence, and create greater stability in Abu Dhabi’s real estate market.

The regulation also impacts new tenants renting properties that were previously occupied. Landlords are not permitted to charge a higher rent than the amount listed in the property’s latest registered Tawtheeq contract. This measure prevents sudden rental increases between tenants and ensures a more transparent leasing process.

However, the rent freeze is not retroactive. Tenants who renewed and registered their contracts before the announcement are not eligible for the new 0% increase rule. Their existing contracts will continue under the previously agreed rental terms.

While the policy provides significant savings and certainty for tenants, landlords may experience slower rental income growth during the freeze period. Even so, industry experts believe the move supports long-term market stability by encouraging tenant retention and maintaining confidence in Abu Dhabi’s real estate sector.

With no official end date announced, tenants and property owners are encouraged to monitor updates from the Abu Dhabi Real Estate Centre (ADREC). Until further notice, the rent freeze is expected to help create a more balanced and predictable rental environment for everyone involved.