Batool Ghaith and Kirstin Bernabe (Abu Dhabi)

The Abu Dhabi Real Estate Centre (ADREC) on Tuesday announced a temporary rent freeze, offering relief to tenants across the emirate.

“All residential, commercial and industrial tenancy contract renewals will be processed at 0% increase for the duration of the measure,” ADREC said in an advisory posted on its official social media channels.

The authority added that any new tenancy contract on a previously rented unit must be offered at the same rental value as the preceding contract.

In an email sent out to residents, ADREC confirmed that the permitted annual rent hike of 5% has been revised to 0% “until further notice”.

The measure, it said, is part of the authority’s efforts to enhance Abu Dhabi’s real estate market and foster a stable, attractive property ecosystem. “We thank you for your trust and renew our commitment to continuously developing a supportive and attractive real estate ecosystem in the emirate,” ADREC told residents. 

A Welcome Relief

For many residents, the announcement brings peace of mind.

“It honestly takes a weight off my shoulders,” said Sarah Al Tamimi, a marketing professional who has lived in Abu Dhabi for three years.

“Every year, when renewal time comes around, there is always some stress about how much more I will have to budget for. Knowing that the rent will stay the same, even if temporarily, makes it so much easier to plan ahead.”

Deepti Garg, a legal and administrative professional who pays Dh75,000 annually for a two-bedroom flat in Al Hosn area, said yearly increases have always required separate financial planning.

“We welcome the decision, as it will definitely make things easier. We don’t have to worry about a rent increase while planning our next move,” she said.

For others, the decision comes just at the right time. Rakan Haddad, who moved to Abu Dhabi less than a year ago, said the freeze gives him the breathing space he needs to sort out his finances.

“My lease is due for renewal in September, and I had already started looking at other options because I was expecting the increase,” Haddad told Aletihad.

“As someone who is still settling into the city, this gives me more time and flexibility. It means I can stay where I am, avoid the pressure of moving and continue building my life here without rushing.”

Haddad added that the measure sends a positive signal to newcomers considering making Abu Dhabi their long-term home. “It is great to see such decisions from the authorities. It helps ease financial burdens, especially for people leasing for the first time.”

Greater Predictability, More Renewals

Real estate professionals said the move is likely to strengthen confidence across the sector. Ubaid Mohammed, an Abu Dhabi-based agent, said the freeze would bring stability and curb the trend of residents relocating each year to avoid rent hikes.

“When residents have greater certainty about their housing costs, they are more likely to renew their leases and remain in their communities,” he said. “It is a great move for the rental environment, even if temporary. It gives a real sense of stability for the year ahead.”

Another real estate agent Mira Sallja agreed, noting that the decision provides greater predictability for tenants and could encourage more renewals over relocations.

“For many tenants, rent is one of the biggest household expenses, so having certainty around renewal costs is extremely valuable,” Sallja told Aletihad.

She added that the measure conveys that the market is being managed in a way that balances growth with residents’ needs.