Guide · updated 29.09.2026 · 13 min read · Lucent Legal team

Can a Landlord Increase Rent in Abu Dhabi in 2026? The 0% Cap Explained

Since 2 June 2026, an Abu Dhabi landlord cannot raise the rent when a lease is renewed. The annual cap dropped from 5% to 0% and stays there until the regulator says otherwise. Here is what to reply to a renewal offer with a higher figure, where to complain, and what the landlord can still do.

Short answer

• The cap is 0%, down from 5%. The Abu Dhabi Real Estate Centre (ADREC) announced it on 2 June 2026 for residential, commercial and industrial property. No end date has been set.
• The benchmark is the last Tawtheeq contract. Renewals and new leases on the same unit must reference the rent in the most recently registered contract. Replacing the tenant does not reset the price.
• It is not retrospective. Leases renewed and registered before 2 June 2026 keep the rent agreed at the time.
• Non-renewal is still possible. Law No. 20 of 2006 requires written notice 2 months before expiry for residential property and 3 months for commercial, industrial and professional premises.
• Complaints go to ADREC, claims go to ADJD. A rental claim at the Abu Dhabi Judicial Department costs 5% of the annual rent, minimum AED 100, maximum AED 40,000.
• ADGM is outside the freeze. Al Reem Island and Al Maryah Island follow ADGM's own property regime.

What ADREC actually decided

ADREC announced the measure on 2 June 2026 on its social media channels and in a circular. The press release on its website carries the date 3 June. According to the release, the Government of Abu Dhabi changed the permitted annual rent increase from 5% to 0% for residential, commercial and industrial property across the emirate.

The release gives no end date. Its wording is "for a temporary short period and until further notice". As of 29 September 2026, ADREC has not announced any change or lifting of the measure.

The operative sentence is about registration. All lease renewals and new agreements "will reference the rental rate from the property's last registered Tawtheeq contract". ADREC's social media post, quoted by The National, puts it more bluntly. Any new tenancy contract on a previously rented unit is offered at the same rental value as the preceding contract.

ADREC gave its own reasons. Demand has outrun supply for several years and occupancy is at record levels. New lease prices rose 15% across Abu Dhabi and 23% in the investment zones compared with the previous year.

ADREC says it will oversee implementation and compliance. Tenants and businesses who think the directive is being ignored are asked to contact the Centre through adrec.gov.ae, its customer service line or its official email address.

The legal basis for a 0% cap

Article 16 of Abu Dhabi Law No. 20 of 2006 lets a landlord raise the rent once a year by no more than 5%. The same article allows the Chairman of the Executive Council to increase, decrease or cancel that percentage. The freeze uses this lever and sets the figure at zero.

The press release cites no legal instrument. Baker McKenzie notes that no decree or numbered resolution has been published, and that the measure was communicated by circular, social media and verbal statements from ADREC.

The cap has been switched off before. According to DLA Piper, the 5% limit was abolished with effect from 22 November 2013. Executive Council Resolution No. 14 of 2016 brought it back from 13 December 2016, and it stayed at 5% until June 2026.

Article 16 also carries a penalty. If a landlord exceeds the permitted increase, the rental dispute body can cut the increase back to the legal limit. It can also fine the landlord up to one year's rent, on its own initiative and even if the tenant did not ask for a fine.

What ADREC has not clarified

ADREC has not issued a FAQ or a detailed guidance note on the freeze. Several questions are open.

• Escalation clauses. Eversheds Sutherland flags that it is unclear whether contractual rent review or step-up clauses can still be enforced during the freeze. This matters mostly for commercial leases.
• Increase notices already served. There is no official word on whether notices sent before 2 June must be withdrawn or are simply suspended.
• Brand-new units. A unit that has never been let has no previous Tawtheeq contract. ADREC has not said how the first letting of new stock is priced.
• Duration. ADREC says any change will be announced through official channels.

Your landlord wants more at renewal: what to do

1. Get the last Tawtheeq contract. The rent shown there is the ceiling for your renewal. Ask the landlord or the property manager for a copy if you do not have one.
2. Check the dates. If your renewal was signed and registered before 2 June 2026, the higher rent stands until the next renewal.
3. Reply in writing. State the rent from the last Tawtheeq contract, cite ADREC's 0% cap and offer to renew at the same figure.
4. Do not hand over cheques for the higher amount. Paying the new figure looks like acceptance. Keep the disagreement on record in emails or messages.
5. Report it to ADREC. The Centre has asked tenants to flag exactly these cases.
6. File a rental claim with ADJD if the landlord still refuses.

Check the registration itself. Under Executive Council Resolution No. 4 of 2011, the landlord is the one who registers the lease. That matters to you, because ADJD asks for a lease attested by the municipality when you file a rental claim.

The freeze caps increases only. Nothing in it stops a tenant from negotiating the rent down.

What a landlord can and cannot do

While the measure is in force, a landlord cannot:

• raise the rent on renewal;
• re-let the same unit to a new tenant above the last registered Tawtheeq rent;
• change the rent in the middle of the term. Article 16 makes the agreed rent binding for the whole lease period.

A landlord can still:

• Decline to renew. Article 20 requires written notice 2 months before expiry for residential leases and 3 months for commercial, industrial and professional premises. This regime has applied since 9 November 2013, when the Law No. 4 of 2010 amendments took full effect.
• Seek eviction for breach. Article 23 lists the grounds, including unpaid rent, subletting without consent, overcrowding, and use contrary to the lease or to public order. It also covers demolition and owner occupation, each with its own conditions and notice.
• Enforce unpaid rent quickly. ADJD can affix the executive wording to a registered lease, which lets the landlord pursue the rent, eviction and ADDC clearance directly.

Silence also has a consequence. Under Article 20, if the lease expires and the tenant stays on with the landlord's knowledge and without objection, the lease renews for the same term on the same conditions.

If you are the landlord

Renew at the figure in the last Tawtheeq contract. Registering a higher rent runs against ADREC's directive.

If you want the unit back, serve written notice in time: 2 months for an apartment or villa, 3 months for an office, shop or warehouse. ADJD asks for proof of that notice when a landlord files for eviction on the ground that the lease will not be renewed.

Re-letting will not raise your income either. A new lease on the same unit references the same registered rent.

The grey area is leases with stepped rent and increase notices already served before the freeze. There is no official position on them yet. If the amounts are significant, get advice from a lawyer before the notice period runs out.

Where a tenant can complain

ADREC takes reports that the freeze is not being observed, through adrec.gov.ae, its customer service line and its official email. It is a regulator, not a court.

The Abu Dhabi Judicial Department (ADJD) hears rental claims. Law No. 20 of 2006 calls this forum the rental disputes committee. ADJD's 2023 services guide lists it as "Request to file a rental claim", service code ADJD0008.

You can file on the ADJD website, through a law firm or at a typing centre. Registration takes 2 working days. You will need:

• your Emirates ID;
• the rental dispute claim form;
• the lease attested by the municipality;
• correspondence and any other supporting evidence;
• Arabic translations from a translator certified by the UAE Ministry of Justice.

The fee in the ADJD guide is 5% of the annual rent, with a minimum of AED 100 and a maximum of AED 40,000. Serving notice on each defendant costs another AED 300. Property portals often quote 4% capped at AED 10,000. The ADJD portal shows the exact fee at filing.

Abu Dhabi vs Dubai rent rules

Dubai runs a different system, and its numbers do not carry over to Abu Dhabi. The RERA scale is explained in rent increases in Dubai, and you can test a specific figure with the Dubai rent increase calculator. Dubai disputes go through the Rental Dispute Centre, and the 12-month notice rule is covered in eviction from a rented flat in Dubai. The wider set of Dubai tenant rights sits in our renting in the UAE hub.

This material is for information only and is not legal advice. UAE law changes — a lawyer will assess how it applies to your situation.