Abu Dhabi temporarily freezes rental increases at 0%

Abu Dhabi’s decision to temporarily suspend rental increases marks an important development in the regulation of its real estate market. Beyond providing immediate protection to tenants, the measure introduces new considerations for property owners, developers, investors and businesses assessing the financial and contractual implications of their real estate arrangements. On 2 June 2026, the Abu Dhabi Real Estate Centre (ADREC) announced a temporary reduction of the permitted annual rental increase from 5% to 0%, applicable to residential, commercial and industrial properties within its jurisdiction. The measure took immediate effect and will remain in place until further notice. The decision follows a period of significant growth in Abu Dhabi’s real estate market, driven by sustained demand and constrained supply across certain segments. According to ADREC, new lease prices had increased by approximately 15% across the Emirate and 23% in investment zones compared with the preceding year. Although intended as a temporary intervention, the measure has broader implications for the way rental income is negotiated, regulated and ultimately reflected in property valuations.