On 2 June 2026, the Abu Dhabi Real Estate Centre (ADREC) made a significant change to the emirate's rental framework: it reduced the maximum permitted annual rent increase from 5% to 0%. In practical terms, landlords in Abu Dhabi currently cannot raise rent at all — on residential, commercial, or industrial leases, for renewals or new lets alike.
What the freeze actually covers
The freeze applies broadly — both to existing tenants renewing their lease and to a landlord attempting to re-let a vacated unit at a higher rate. This second point matters: a landlord cannot get around the freeze simply by waiting for one tenant to leave and pricing the next one higher.
How this differs from Dubai
Abu Dhabi and Dubai now run genuinely different rental systems, which is a common source of confusion for anyone who's rented in both:
| Dubai | Abu Dhabi | |
|---|---|---|
| Regulator | RERA (Dubai Land Department) | ADREC |
| Registration system | Ejari | Tawtheeq |
| Current rent increase cap | Up to 20%, on a sliding scale | 0% (as of June 2026) |
| Governing law | Law No. 26 of 2007 (as amended) | Law No. 20 of 2006 (as amended) |
Notice periods for changes or non-renewal
Separately from the rent-increase freeze, Abu Dhabi law requires a landlord to give at least two months' written notice before a residential contract expires if they intend to change lease terms or decline to renew — three months for commercial leases.
What this means going forward
A 0% cap is, by definition, the strictest possible position — there's no room for it to tighten further. What's genuinely uncertain is how long it stays in place and whether ADREC phases in a modest increase again once market conditions shift. For tenants currently renewing in Abu Dhabi, this is a materially favourable moment. For landlords, it means rental income from existing tenancies is fixed for the time being, regardless of where broader market rents move.