From families facing rent increase notices to workers stretched by rising costs, Abu Dhabi tenants say the decision came at a critical moment
When Abu Dhabi recently announced a cap on rental increases from 5 per cent to 0 per cent, Zayed Al Hashemi was among the residents who felt immediate relief.
The Emirati father of eight had been counting down to his contract renewal in two months when he received a notice from his landlord seeking renewal only if he accepted a 5 per cent increase. “This decision came at the right time,” Al Hashemi told media. “Without it, we would have been forced to leave our home and find a new place due to a rent hike.”
The measure, announced on June 2, applies to residential, commercial and industrial properties in Abu Dhabi and will remain in place until further notice. It means landlords cannot raise rents on contracts renewed during the freeze period, and the renewal amount must match the last registered Tawtheeq contract.
For tenants like Al Hashemi, this has turned a difficult renewal into a moment of reprieve.
His experience is far from isolated. Across Abu Dhabi, tenants say the pressure to absorb rising rents has been building for months, adding to household budgets already stretched by higher costs elsewhere.
Alaa Salem, a Jordanian resident and tenant, said the announcement matters beyond the numbers. “This is especially important now, with rising fuel and goods prices already stretching household budgets,” Salem told media.
“My concern is that some landlords will find other ways to push tenants out, because all they care about is getting that increase, regardless of the tenant’s situation or even whether the building justifies a higher price given its age and maintenance,” he added.
The Abu Dhabi Real Estate Centre told media the decision was driven by demand consistently exceeding supply over the past three years, pushing occupancy rates to record highs. New lease prices have risen 15 per cent across Abu Dhabi and 23 per cent in investment zones compared to last year, affecting housing continuity for many residents, the centre said.
The centre said the measure is aimed at creating a predictable, people-centred residential environment where households and businesses can plan with confidence.
However, the freeze is not retrospective. ADREC has confirmed that contracts renewed and registered before the circular was issued remain unchanged, with the 0 per cent cap applying only from the date of the announcement.
A stabilising signal for Abu Dhabi property market
For those working inside the real estate sector, the decision carries a different kind of significance.
Nour Al Hadi, who works in real estate in Abu Dhabi, said the freeze addresses a structural pressure that has been building as the emirate becomes an increasingly popular destination for residents seeking stability.
“A lot of people have been moving to Abu Dhabi to live and work, and after everything that has happened recently, people are looking for certainty in their expenses,” Al Hadi told media. “When housing costs become unpredictable, it affects the whole family. This decision brings a real sense of stability to the market.”
