Abu Dhabi has temporarily frozen all rent increases across residential, commercial, and industrial properties. Announced by the emirate’s real estate regulator, the Abu Dhabi Real Estate Centre (ADREC), all tenancy contract renewals will be processed with a 0% increase until further notice, offering major financial relief amid broader economic uncertainties as Middle East war continues.
According to Gulf News, ADREC stated that the amount agreed upon in the previous contract will continue to apply, and no rent hikes will be allowed on either renewed or newly signed lease agreements until further notice.
launched its first official rental index in 2024 to enhance transparency and establish benchmark rental rates for both tenants and landlords. The emirate also operates the Tawtheeq system, which is used to register and authenticate all residential and commercial tenancy contracts, reported Khaleej Times.
Industry experts quoted by Gulf News said the rent freeze could offer greater financial predictability for both households and businesses by stabilising one of the most significant components of living and operating expenses.
The decision temporarily suspends the existing provisions under Abu Dhabi law that permit landlords and property management firms to raise rents by up to 5% annually, subject to tenants receiving at least two months’ notice before their lease renewal.
As one of the largest expatriate groups in the region, many Indian families and small business owners typically face annual financial pressure when renewing leases. This measure protects them from unexpected financial burdens and significantly improves household budgeting.
Experts react
Piyush Lohia, Managing Director of Lohia Worldspace, welcomed the decision, calling it an important measure for enhancing market stability. He mentioned the initiative could help safeguard household finances, ease the burden of frequent relocations for expatriate families, and further boost Abu Dhabi’s attractiveness as a long-term base for international professionals, according to NDTV.
“By freezing rent increases and preventing higher premiums on vacant units, the policy brings much-needed predictability for tenants,” Lohia stated.
The move comes amid sustained growth in Abu Dhabi’s sector, which continues to attract strong interest from both homebuyers and investors. While authorities have not specified how long the rent freeze will remain in effect, the policy ensures that tenants across the emirate will not face any rent increases for the time being.
Farooq Syed, CEO of Springfield Properties, said the decision would bring greater stability and predictability for both residents and businesses. “For many tenants, this offers predictability around housing and occupancy costs, helping to ease financial pressure and support longer-term planning,” he said. He noted that policies aimed at improving affordability and providing certainty help boost market confidence while enhancing Abu Dhabi’s appeal as a destination to live, work, and invest.
Speaking to Khaleej Times, Ben Crompton, Managing Partner at Crompton Partners, described Abu Dhabi’s decision to freeze rents as an uncommon step that would provide significant relief to residents.
“In the past, rents have been capped at 5 per cent, most recently in 2018 and that was helpful to people,” he said. “This freeze of rents will be a huge relief for many that are struggling in this economy.”
The rent freeze forms part of a broader package of relief measures introduced by authorities following the beginning of the US-Iran war on February 28.
As part of these efforts, Abu Dhabi’s Department of Culture and Tourism earlier directed hotels to provide accommodation for travellers stranded by flight disruptions, with the government bearing the cost of the additional stays, Khaleej Times reported. Dubai later implemented similar measures to assist tourists affected by flight cancellations and delays.