The Government of Abu Dhabi has updated the annual rental cap, reducing the allowable rent increase from 5 percent to 0 percent per annum for residential, commercial, and industrial properties across the emirate until further notice.
The measure is aimed at enhancing stability in Abu Dhabi’s real estate market, supporting residents and businesses, and reinforcing the emirate’s commitment to sustainable economic growth and long-term community well-being.
The temporary rental freeze comes as demand for property across Abu Dhabi continues to outpace supply. Over the past several years, occupancy rates have reached record levels, reflecting strong demand from residents, businesses, and investors.
The supply-demand imbalance has contributed to significant increases in rental prices. New lease rates have risen by 15 percent across Abu Dhabi and by 23 percent in designated investment zones compared to the previous year, placing additional pressure on housing affordability and continuity for many residents.
The temporary measure is designed to create a more predictable and people-centered residential and business environment. By stabilizing rental costs, the initiative aims to help households and companies plan with greater confidence while supporting economic resilience and social stability across the emirate.
The government noted that the cost of living remains a key factor in strengthening long-term community attachment and fostering sustainable growth. The rental cap adjustment also reflects Abu Dhabi’s ongoing efforts to ensure that the emirate remains an attractive destination for residents, investors, and businesses.
Under the directive, all lease renewals and new tenancy agreements will be based on the rental rate specified in the property’s most recently registered ‘Tawtheeq’ contract.
The Abu Dhabi Real Estate Centre (ADREC) will oversee the implementation of the measure, monitor compliance, and coordinate with relevant stakeholders throughout the temporary period to ensure the directive is applied consistently across the emirate.
Tenants and businesses who believe the directive is not being followed are encouraged to contact ADREC through its official channels, including its website, customer service center, and official email address.
