A view of the Abu Dhabi skyline. ARCHIVE

Tenants across Abu Dhabi received welcome news after the emirate announced a temporary freeze on rents starting Tuesday (June 2), preventing landlords from increasing rental rates on existing and new tenancy contracts until further notice. The announcement was made by the Abu Dhabi Real Estate Centre (ADREC) and took immediate effect. Under the measure, all residential, commercial and industrial tenancy contract renewals will be processed without any increase in rent. The freeze also applies to new tenancy agreements involving units that were previously rented, with landlords required to offer the property at the same rental value as the preceding contract. The move comes as Abu Dhabi continues to implement measures aimed at easing financial pressures on residents and businesses amid ongoing regional instability. Prior to the freeze, Abu Dhabi regulations allowed landlords and property management companies to increase rents by up to 5 per cent annually, provided tenants were notified at least two months before contract renewal. The latest decision is expected to provide immediate relief for thousands of residents in the capital, many of whom already shoulder additional housing-related costs.

Housing fee remains in place

Tenants in Abu Dhabi, however, are required to pay a municipal housing fee equivalent to 3 per cent of their annual rent. The fee applies to all housing units in the emirate and is collected through the Tawtheeq tenancy registration system. Tawtheeq serves as Abu Dhabi's official tenancy contract registration platform, maintaining legally binding records of lease agreements and property-related data. Registration through the system is mandatory for both residential and commercial tenancy contracts. The rent freeze follows broader reforms introduced by Abu Dhabi to improve transparency in the real estate sector. In 2024, authorities launched the emirate's first official rental index, providing indicative rental values for residential properties. The platform was designed to help tenants and landlords make informed decisions while supporting stability in the property market. This is not the first time Abu Dhabi authorities have stepped in to freeze rents during challenging periods. In 2021, during the Covid-19 pandemic, Abu Dhabi Ports implemented a rent freeze for businesses operating within its Industrial Cities and Free Zone cluster. The initiative benefited more than 1,400 companies and was aimed at supporting economic recovery. The rental freeze is part of measures that authorities in Abu Dhabi have introduced to support residents and visitors affected by regional disruptions. In March, the Department of Culture and Tourism  instructed hotels across the emirate to extend stays for guests unable to travel because of flight disruptions and restrictions, with the authority covering the cost of additional nights. ICA/Expat Media
For all the latest news from the UAE and the world, follow us on Facebook, Twitter and Instagram and subscribe to our YouTube page