Temporary update to Annual Rental Cap Increase in Abu Dhabi

• All residential, commercial, and industrial tenancy contract renewals to be processed at a 0% increase for the duration of the measure.

Abu Dhabi, United Arab Emirates - 03 June 2026

In alignment with its commitment to enhancing Abu Dhabi real estate market, the Government of Abu Dhabi has updated the rental increase percentage from 5% to 0% per annum on residential, commercial, and industrial properties across the Emirate for a temporary short period and until further notice.

With demand consistently exceeding supply over the past few years, occupancy rates have reached record highs. This demand has driven new lease prices up 15% across Abu Dhabi and 23% in investment zones compared to last year, impacting housing continuity for many residents. The temporary measure creates a predictable, people-centred residential environment where households and businesses can plan with confidence and security. Cost of living is a key factor to foster long-term community attachment, economic resilience, and sustainable growth, reinforcing Abu Dhabi's enduring commitment to being a place where residents and enterprises thrive together.

All lease renewals and new agreements will reference the rental rate from the property's last registered “Tawtheeq” contract. ADREC will also oversee coordinated implementation and compliance and engage with all relevant stakeholders throughout the period 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 official channels: the website adrec.gov.ae, the Centre's dedicated customer service line, and the official email address.