Abu Dhabi rent-increase limits could boost tenant retention

Tenants in Abu Dhabi could have more reason to stay in their homes for longer as rent restrictions reduce landlords’ ability to raise prices between tenancies, according to Colliers. The consultancy said limiting rent increases between tenants reduces the incentive for landlords to replace existing residents with new tenants willing to pay higher rents. That could support higher tenant retention, lower mobility and greater certainty over housing costs, particularly after a period of strong rental growth in the capital. For landlords, however, the regulation could limit near-term rental upside and potentially put pressure on yields. The change comes as Abu Dhabi’s residential rental market has already started to moderate. Average apartment rents declined 2 per cent in Q2 2026, while villa rents fell 3 per cent, according to Colliers. Despite the quarterly decline, rents remained higher than a year earlier, with apartment rents up 7 per cent year-on-year and villa rents 5 per cent higher. A key part of the regulation is that newly completed properties remain exempt, allowing landlords of new homes to lease them at prevailing market rates. Colliers said this could create a two-tier