Not for now. Since June 2026, every renewal of a residential, commercial or industrial lease in Abu Dhabi must stay at the same rent, and a home that was rented before must be offered to a new tenant at the rent in its last registered contract. The government cut the yearly increase allowed from 5% to 0% "for a temporary short period and until further notice", in the words of ADREC, the emirate's real estate regulator. When the freeze ends, the law's normal rule returns: at most 5% once a year.
This is a summary for owners and tenants, not legal or financial advice. The freeze has no end date, so check ADREC's news center for the current position before you sign or renew. As of Nov 8, 2026, it lists no later update to the freeze.
Which law sets the rules?
Abu Dhabi's leasing law is Law No. 20 of 2006 on leasing and the relations between landlords and tenants, as amended. ADREC publishes the amended text in English on its regulations page. It covers homes, shops, offices and industrial property, with a few exceptions in Article 2, including hotel and tourism property (furnished apartments among them), government housing and housing that comes with a job.
Two of its articles matter most here:
- Article 16 sets the cap on rent increases, and lets the Chairman of the Executive Council raise, lower or cancel it.
- Article 20 sets how much notice each side must give before a lease ends.
What did the June 2026 freeze change?
ADREC's announcement says the government "updated the rental increase percentage from 5% to 0% per annum" across the emirate. It took effect at once when ADREC announced it on Jun 2, 2026, as Gulf News reported that day. In ADREC's words, all residential, commercial and industrial renewals are "to be processed at a 0% increase for the duration of the measure."
| Before Jun 2, 2026 | Since Jun 2, 2026 | |
|---|---|---|
| Renewal | Up to 5% a year | 0%, same rent |
| New tenant, home let before | Up to 5% more | Last registered rent |
| Property types | All | All |
| How long | Standing rule | Until further notice |
The benchmark is the rent in the property's last Tawtheeq contract, the registered lease. ADREC says that "all lease renewals and new agreements will reference the rental rate from the property's last registered 'Tawtheeq' contract". So the registered figure counts, not an asking price you see online.
ADREC gave its reason in the same release: new lease prices had risen 15% across Abu Dhabi and 23% in the investment zones in a year, and occupancy was at record highs.
What is the normal cap when there is no freeze?
Article 16 says a landlord "may not increase the rent specified in the contract except once each year by no more than five percent (5%)". The year counts from the last lease or the last increase. The rent agreed in a lease binds both sides for its whole term.
The cap has moved over the years. It was abolished in November 2013 and the 5% cap was brought back from December 2016, as The National explains. The freeze is the latest change under the same power.
Article 16 also lets the lease disputes committee cut an increase back to the legal limit, and fine a landlord up to one year's rent for going over it, even if the tenant did not ask for a fine.
How much notice must a landlord or tenant give?
Under Article 20, a side that does not want to renew, or wants to change the terms, must tell the other in writing:
- two months before the lease ends, for a home
- three months before it ends, for commercial, industrial or professional property
If the lease ends and the tenant stays on with the landlord's knowledge and no objection, it renews for the same term on the same terms. While the freeze lasts, a notice can still change other terms, but not raise the rent.
Can a landlord ask a tenant to leave instead?
Only for the reasons Article 23 lists, among them:
- the tenant does not pay the rent on time (unless they pay it, with the landlord's costs, before the case is decided)
- the tenant sublets without permission, overcrowds the home, or uses it against the contract or public order
- the landlord will demolish a building more than 15 years old to rebuild, with the permits, giving six months to leave
- the landlord wants to live in the home, owns no other home in that municipality, gives six months' notice before the lease ends, and then lives there for a full year
If a landlord evicts to move in or to rebuild and then does not, the committee can order the tenant back in, compensation of up to one year's rent, or both.
Who settles a dispute?
The law sets up Lease Disputes Resolution Committees under the Abu Dhabi Judicial Department, chaired by a judge (Article 24), with appeal committees above them. A decision on a claim of AED 50,000 or less is final (Article 28). For the freeze itself, ADREC asks tenants who think it is not being followed to contact it through adrec.gov.ae, its customer service line or its email.
Does the freeze apply everywhere in Abu Dhabi?
ADREC's announcement says it covers properties "across the Emirate". Law firms report one exception: property inside Abu Dhabi Global Market (ADGM), which has its own rules. Baker McKenzie writes that ADREC has "informally indicated" the freeze does not extend to ADGM. ADREC's own H1 2026 market report describes Al Reem Island and Al Maryah Island as operated by ADGM. If you rent or let there, confirm with ADGM and ADREC which rules apply to your building.
Law firms also flag open questions: whether rent review clauses in long commercial leases still work during the freeze, and what happens to increase notices sent before Jun 2, 2026. Eversheds Sutherland calls ADREC's guidance "high level". If either touches your lease, take advice.
What does this mean if you buy to let?
- A tenant comes with the home. Under Article 18, a lease stays in force when the property is sold, so if you buy a rented home, you take over its lease and, while the freeze lasts, its registered rent.
- Price from the registered rent, not the listings. For a home rented before, the rent you can charge a new tenant is the one in its last Tawtheeq. Ask the seller for it before you agree a price.
- A brand-new home is a different case. ADREC's wording covers renewals and homes rented before. A home being let for the first time, such as an off-plan unit just handed over, has no earlier contract to refer to; confirm with ADREC how its first rent is set.
- No rise for now, and no date for one. Work out any yield on today's rent with no increase. ADREC's Abu Dhabi Rental Index, launched in 2024, gives indicative rents by area to check a figure against, and our rental yield calculator does the arithmetic. We promise no return.
Dubai works differently: increases there are tied to the Dubai Land Department's rental index, from 0% to 20%, as our post on how much a landlord can raise rent in Dubai explains. Service charges also come out of rent, so see our post on service charges in Abu Dhabi too.
In short
- Since Jun 2, 2026, Abu Dhabi rents cannot rise at renewal, and a home rented before goes to a new tenant at its last registered rent.
- The freeze is temporary, with no end date; when it ends, the law's cap of 5% once a year applies again.
- Two months' written notice before the lease ends for a home, three months for commercial property.
- ADGM areas, including parts of Al Reem and Al Maryah Islands, appear to be outside the freeze: confirm.
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