The Abu Dhabi Government has said its temporary rent freeze was introduced after demand continued to exceed supply over the past few years, pushing occupancy rates to record highs and driving up new lease prices across the emirate.
In a press statement, the government said new lease prices had risen 15 per cent across Abu Dhabi and 23 per cent in investment zones compared to last year, impacting housing continuity for many residents. The statement came after Abu Dhabi announced a temporary update to the emirate’s annual rental increase cap, reducing it from 5 per cent to 0 per cent per annum across residential, commercial and industrial properties.
The measure, which took effect on June 2, will remain in place until further notice. All lease renewals and new agreements will reference the rental rate recorded in the property’s last registered Tawtheeq contract.
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The government said the move is designed to create a predictable, people-centred residential environment where households and businesses can plan with confidence. Cost of living is a key factor in fostering long-term community attachment, economic resilience, and sustainable growth, the centre added.
ADREC said it will oversee coordinated implementation and compliance throughout the period, engaging with all relevant stakeholders to ensure the directive is upheld across the emirate. Tenants and businesses who believe the directive is not being observed are encouraged to contact ADREC through its website adrec.gov.ae, its customer service line, or its official email address.
Source: Khaleej Times