On 2 June 2026, the Abu Dhabi Real Estate Centre (ADREC) announced a temporary freeze on rent increases across the emirate, effective immediately and covering residential, commercial and industrial tenancy contracts.
What the measure does
ADREC has adjusted the permitted annual rent increase from 5 percent to 0 percent. In practice:
- Renewals of all residential, commercial and industrial contracts are processed with no rent increase.
- New contracts on previously rented units must be offered at the value recorded in the preceding contract.
The freeze is temporary and remains in effect until further notice, with no end date specified.
How rental values are set
Lease renewals and new agreements must reference the rental value in the property’s most recent registered Tawtheeq contract. That last registered figure becomes the baseline, and no increase may be applied to it while the measure stands. Because Tawtheeq registration is mandatory and its records are legally binding, this gives the freeze a verifiable reference point and limits room for dispute.
For context, Abu Dhabi law previously allowed annual increases of up to 5 percent, subject to at least two months’ notice before renewal. That ceiling is now set to zero for the duration of the measure. The 3 percent housing fee levied under Abu Dhabi Council Resolution No. 13 of 2016 is unaffected, as it concerns the fee rather than the rent itself.
Stated reasons
ADREC linked the measure to sustained pressure in the rental market, citing demand outpacing supply, record occupancy, and a 15 percent rise in new lease prices across the emirate over the past year (23 percent in designated investment zones).
The freeze is therefore presented as a short-term step to hold leasing costs steady for households and businesses while supply and demand remain unbalanced.
Compliance
ADREC will oversee implementation and monitor compliance. Tenants and businesses who believe the freeze is not being observed are directed to its official channels: the website (adrec.gov.ae), the dedicated customer service line, and the official email address.
Practical implications
Landlords cannot apply increases on renewal, and re-letting a previously occupied unit does not reset the rent upward; the last registered Tawtheeq value governs. Tenants renewing a lease should face no increase, and the same protection extends to commercial and industrial tenants. Keeping a copy of the most recent registered contract is sensible, as it establishes the baseline against which any renewal should be measured.
Because the measure is temporary and open-ended, both sides should monitor ADREC announcements for any change to its scope or duration.