Can a landlord raise rent in Abu Dhabi?

· Editor: George Vanous

An artist's rendering of a modern two-story villa in Al Shawamekh with white and stone walls, a balcony with lounge chairs, a swimming pool and sun loungers in front, a shaded outdoor dining area and palm trees around it
Image: Fay Al Reeman 2 by Aldar Properties

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:

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:

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:

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?

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

Browse the catalog's 59 off-plan projects in Abu Dhabi (as of our Nov 1, 2026 import), from Yas Island to Masdar City, or ask our AI advisor about a project's terms.

More from the blog