Abu Dhabi Real Estate Centre has announced that rents for residential, commercial and industrial properties will not increase until further notice, apart from communities managed by Abu Dhabi Global Market such as Al Maryah Island and Reem Island.
The temporary measure was announced by the property centre on its social media channels on Tuesday morning. “Your rent stays the same. A temporary measure is in effect across Abu Dhabi,” the centre posted on social media.
“All residential, commercial and industrial tenancy contract renewals will be processed at a zero per cent increase for the duration of the measure. Any new tenancy contract on a previously rented unit will be offered at the same rental value as the preceding contract.”
A circular from the real estate centre said the measure would be in place until further notice.
However, a representative for the real estate centre told The National the rental freeze “does not include the ADGM jurisdiction as they are on a different legal framework and governance”.
They added that ADGM communities were the only exception to the rental freeze.
An annual cap has been in place in Abu Dhabi since 2016, preventing landlords from raising rent by more than 5 per cent when tenancies are renewed.
The rent freeze comes as many people in the UAE struggle with rising prices, with some losing their jobs or facing salary reductions, linked to the Iran war.
Last year, Abu Dhabi's rental market remained very tight, driven by strong population growth and limited available homes. One market report estimated that average residential rent prices rose 11 per cent in 2025.
Tuesday's announcement is “very good” for renters whose tenancies are up for renewal now, Ben Crompton, managing partner of Crompton Partners, told The National.
“Realistically there was only a 5 per cent increase in place before, so it’s not a huge bonus but it’s something,” he added.
“It shouldn’t impact landlords too much … they’ve just lost that 5 per cent uplift.”
Rents cannot be increased
The freeze also puts tenants in a strong position to negotiate better deals, said another property expert.
“This is giving more muscle to the tenants to dictate a better price for themselves,” said Mario Volpi, senior manager at Eva Real Estate. “While it says there is no increases, it does not specifically mention that a tenant cannot negotiate further. It’s great news for tenants … because it means that they can budget going forward without the threat of potentially having to pay more.”
However, Mr Volpi said, the move appears to be “one-sided”.
“It’s very much all in favour of the tenant, with hardly any benefit from the landlord’s side,” he added. “Why is it that they’re doing this for tenants but not for landlords? You might see less speculative buying from landlords [who had been] thinking that their rent will just keep going up.”
But another property expert believes the rent freeze could also benefit landlords. “For some it might not be pleasant that they cannot implement increases, but on the other hand, for some it ensures that their tenants will stay where they are for this reason,” said Andry Grouta, property consultant at MD Real Estate.
“With the instability that exists in the region, the market has been shaken up a bit. Everything, even petrol, increased recently with the [Iran war] situation, so people are finding it difficult to get by financially. In this way, they manage their finances much better.
“This is a good move. It is basically giving a breather to the tenants because in the past couple of years, we've seen the rents climbing very high.”
Rental respite for tenants
Abu Dhabi resident Melanie Nazareno, 37, said the decision offered “certainty and peace of mind” and would ease the financial strain on families in the capital.
“The news came as a huge relief for our family. We were facing a six per cent rent increase this year, and with the cost of living rising across so many areas, it was becoming a real concern,” she said.
“As a mother of two, any additional expense has an impact on the family budget, so knowing our rent will remain stable gives us much-needed certainty and peace of mind.
“With everything that has been going on, it may not solve every challenge, but it certainly eases some of the pressure and gives families like ours one less thing to worry about.”
Fellow Abu Dhabi resident Shehla Sohail said she will miss out on the rent freeze, having recently renewed her lease, but said it was a positive move for residents.
“As an Abu Dhabi resident, I think this is a very welcome decision,” she said.
“My tenancy renewal was processed recently and included a 5 per cent rent increase, which I understood given the market conditions, but this move will definitely bring relief to many residents facing renewals in the coming months.
“With the cost of living always on people’s minds, having greater certainty around housing costs makes a real difference. It’s a positive step that shows Abu Dhabi is focused on supporting residents while maintaining a stable and attractive property market.”
