Abu Dhabi freezes rent increases for renewals and new leases

Big news if you're renting or looking to move to Abu Dhabi right now.

The Abu Dhabi Real Estate Centre (ADREC) just announced a temporary freeze on annual rent increases across the capital.

The annual rent increase cap is dropping from 5% to 0% until further notice. This applies to all types of properties, whether you are renewing your current lease or signing a brand-new contract.

It is a massive, unexpected shift for the local property market. Experts are calling it an unprecedented move to give residents some relief. As Ben Crompton, Managing Partner of Crompton Partners, shared in a recent update, it is a "short term in nature, to perhaps alleviate some of the issues tenants are going through at the moment but it's an unprecedented move. We didn't see this coming, but great news for tenants.”

There is one important geographical catch to keep in mind. This zero-percent cap applies specifically to the ADREC jurisdiction, which excludes Al Maryah Island and Reem Island, who are under ADGM.

When it is time to sign, the rental value recorded in the most recently registered contract for that exact unit will be used as the reference rate - offering some welcoming predictability to the rental market and those living in Abu Dhabi.