Abu Dhabi’s move is broader in scope than Dubai’s graduated rent cap — it covers commercial and industrial leases as well as residential, and has no defined exit date.
On 2 June 2026, the Abu Dhabi Real Estate Centre (ADREC) announced the introduction of a temporary and comprehensive freeze on rental increases across all property sectors in the emirate, covering residential, commercial, and industrial assets.
The directive applies to all types of leased properties, including apartments, villas, office spaces, retail units, warehouses, and light industrial facilities. Under the new rule, both new tenancy agreements for previously rented units and the renewal of existing contracts are subject to the same condition: the rental value stated in the most recent contract will serve as the maximum allowable rent, with no increase permitted during the freeze period.
ADREC stated that the measure is intended to reinforce market stability and safeguard tenants, particularly in light of continued strong demand and sustained investment activity driving growth in Abu Dhabi’s real estate sector.
Unlike systems such as Dubai’s rent framework, which allows regulated and incremental annual increases based on official valuation indices, Abu Dhabi’s approach imposes a strict 0% adjustment cap, effectively pausing all rental escalation until further notice.
The authority further clarified that the policy applies uniformly regardless of the gap between current market rates and existing lease values. This means landlords are not permitted to adjust rents to align with prevailing market prices at the time of renewal. Similarly, any new lease agreements for previously occupied units must adhere strictly to the last contracted rental rate, ensuring continuity of pricing across the affected properties.
ADREC emphasized that the freeze is a temporary regulatory intervention aimed at balancing tenant protection with ongoing real estate sector growth, and it will remain in effect until further updates are issued by the authority.
