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ADREC clarifies 0% annual rental increase in Abu Dhabi

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3 June 2026 19:24

ABU DHABI (ALETIHAD)

The Abu Dhabi Real Estate Centre (ADREC) has clarified that cost of living was a key consideration in its decision to revise the rental increase percentage from 5% to 0% per annum on residential, as well as commercial and industrial properties across the emirate.

The measure is in place for a temporary period and until further notice.

ADREC explained that with demand consistently exceeding supply in recent years, occupancy rates have reached record highs. This demand had driven new lease prices up 15% across Abu Dhabi and 23% in investment zones compared to last year, impacting housing continuity for many residents.

It said the temporary measure creates a predictable, people-centred residential environment where households and businesses can plan with confidence and security.

Cost of living was a key factor to ensuring long-term community attachment, economic resilience, and sustainable growth, reinforcing Abu Dhabi's commitment to being a place where residents and enterprises thrive together.

ADREC noted that all lease renewals and new agreements will reference the rental rate from the property's last registered “Tawtheeq” contract.

ADREC will also oversee coordinated implementation and compliance and engage with all relevant stakeholders throughout the period to ensure the directive is upheld across the emirate.

Tenants and businesses who believe the directive is not being observed are encouraged to contact ADREC through its official channels: the website adrec.gov.ae, its dedicated customer service line, and its official email address.

 

 

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