The emirate has announced a temporary reduction of its annual rent increase cap from 5% to 0% across residential, commercial, and industrial properties.
On June 2, Abu Dhabi announced a temporary reduction of its annual rent increase cap from 5% to 0% across residential, commercial, and industrial properties, effective immediately and until further notice. The move has brought relief to thousands of tenants across the emirate.
However, as residents absorb the details, a key question has emerged: what happens to tenants who renewed their contracts just days before the announcement was made?
Abu Dhabi Real Estate Centre confirmed that the measure is not applied retrospectively. Contracts that were renewed and officially registered before the announcement will remain unchanged, with the 0% rent increase cap taking effect only from the date the circular was issued.
Here is what the decision means for tenants and landlords:
- My contract is up for renewal soon. What happens now?
Your landlord cannot increase the rent during the freeze period. Renewal must reflect the same value stated in your last registered Tawtheeq contract, with no increase applied. - I am moving into a unit that was previously rented. What is my reference price?
The rent offered cannot exceed the value recorded in the most recent registered Tawtheeq contract for that unit. Tenants are advised to request a copy before signing. - How long does the freeze last?
Abu Dhabi Real Estate Centre has not announced an end date. The measure will remain in effect until further notice, with any updates communicated through official channels. - What if my landlord tries to raise the rent anyway?
Tenants can contact Abu Dhabi Real Estate Centre via its website, customer service line, or official email for assistance and complaints.
