The freeze on rent increases is effective immediately

The Abu Dhabi government announced a freeze on rent increases for residential, commercial and industrial properties in all areas of the emirate for a short, temporary period and until further notice.
The Abu Dhabi Real Estate Center stated in a statement that this procedure takes effect with immediate effect, and according to the decision, all lease contracts will be renewed at an increase rate of (0%) throughout the period of validity of the decision, compared to the previously applied increase rate of 5%.
The decision comes within the framework of the Abu Dhabi government’s ongoing efforts to enhance the stability of the Abu Dhabi real estate market, and provide a clearer and more reliable system for the population and the business sector, thus consolidating the quality of life and enhancing the emirate’s competitiveness in the long term.
The statement pointed out that the real estate sector in Abu Dhabi has witnessed, over the past years, a remarkable growth in demand, with occupancy rates reaching record levels, which caused an increase in new rental prices by 15% across the emirate, and 23% in investment areas compared to last year.
The statement stressed that the new decision would support the stability of the real estate system and enhance its ability to meet the needs of residents and companies, as it would allow them to plan for the future with greater confidence. Fixed rental costs also enhance long-term community cohesion, support economic flexibility, and stimulate sustainable growth, thus consolidating the leading position of the Emirate of Abu Dhabi as an attractive global destination where communities flourish and companies grow.
He said that the decision reflects the Abu Dhabi government’s commitment to continuing to develop a balanced and sustainable real estate environment that supports the interests of all parties and enhances the emirate’s competitiveness and its ability to attract talent and investments.
According to the Abu Dhabi Real Estate Center, the rental value specified in the last registered “documentation” contract for the property is scheduled to be adopted as the basis for all renewals of lease contracts and the conclusion of new agreements during the period of validity of the decision. The Abu Dhabi Real Estate Center (ADREC) is also responsible for supervising the implementation of the decision and following up on compliance with its provisions, in addition to direct communication with all concerned parties to ensure effective implementation throughout the emirate.
He explained that tenants and companies can obtain more information and inquiries about the decision through the official channels of the Abu Dhabi Real Estate Center Abu Dhabi, including the website adrec.gov.ae, customer service, and official e-mail.
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