Abu Dhabi Freezes Residential and Commercial Rents Across Emirate

ABU DHABI, UAE - Abu Dhabi has introduced a temporary rent freeze across residential, commercial, and industrial properties, preventing landlords from increasing lease rates until further notice in a move designed to support residents and businesses during a period of heightened regional uncertainty.

The Abu Dhabi Real Estate Centre (ADREC) announced that all tenancy contract renewals will now be processed with a 0% rent increase, effective immediately. The measure also extends to new tenancy agreements for previously rented properties, requiring landlords to offer leases at the same rental value as the preceding contract.

The decision temporarily suspends a key component of Abu Dhabi’s rental framework, which previously allowed landlords and property management companies to increase rents by up to 5% annually, provided tenants were notified at least two months before lease renewal.

Tenant Relief Measures

The latest directive is expected to provide additional financial certainty for households and businesses operating in the emirate, while helping to maintain market stability during a period of ongoing geopolitical tensions and broader economic uncertainty.

By freezing rental increases across multiple property sectors, authorities aim to reduce cost pressures on tenants while supporting confidence in the local economy.

The announcement comes against a backdrop of continued strength in Abu Dhabi’s real estate sector.

Residential transaction activity remained steady throughout March and April, with more than $3.54 billion (AED13 billion) in residential sales recorded during April alone. More than 3,200 residential units were sold during the month, reflecting sustained buyer demand across the market.

Market data also indicated that the ready-property segment continued to perform in line with historical averages, while asking prices remained relatively stable. Approximately 90% of property listings either maintained their pricing levels or recorded modest increases, suggesting limited volatility across the market.

Leasing Activity Continues to Expand

The emirate’s rental market has also continued to demonstrate strong momentum throughout 2026.

Active rental contracts have increased consistently on a weekly basis, highlighting sustained demand for residential and commercial space across Abu Dhabi. The continued growth in leasing activity reflects the emirate’s expanding population base, economic diversification efforts, and ongoing attractiveness as a destination for residents and businesses.

The temporary rent freeze is expected to further support occupancy levels while reinforcing Abu Dhabi’s broader efforts to maintain a balanced and sustainable real estate market.