Real Estate Experts Welcome Abu Dhabi's 'Extremely Rare' Move To Freeze Rents

Real estate experts have welcomed the move by Abu Dhabi to temporarily freeze rents, with one industry veteran describing the move as“extremely rare” on a global scale.

The decision, which takes effect immediately, overrides the existing framework that allowed landlords to raise rents by up to 5 per cent annually, provided tenants were given a two-month notice period. Under the new rules, all tenancy contract renewals will be processed at no increase until further notice.

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Ben Crompton, Managing Partner at Crompton Partners, told Khaleej Times that while the freeze itself provides short-term relief, the most significant element is the accompanying“vacancy protection” clause.

“If a landlord kicks out a tenant, he can only rent the property at the same rent,” he said.“Normally, it was a floating rent where the landlord could then rent it at whatever the market will pay. But now it's been locked.” He noted that this level of tenant protection is“extremely rare in the world” and“doesn't happen very often”.

Farooq Syed, CEO of Springfield Properties, said that the move will provide greater certainty for both residents and businesses.“For many tenants, this offers predictability around housing and occupancy costs, helping to ease financial pressure and support longer-term planning,” he said.“Measures that support affordability and certainty play an important role in strengthening confidence across the market and reinforcing the emirate's attractiveness as a place to live, work, and invest.”

Ben said that the mandatory Tawtheeq system, which registers all tenancy contracts, will automatically block any attempt to register a contract at a higher rate than the previous year even if a tenant has agreed to a rate increase prior to this rule being passed.

“When you put in the new rent in the Tawtheeq system, it will not allow you to put in any higher rent,” he said.“So even if a tenant has agreed with the landlord for a 5 per cent increase, the system will block the higher rent.”

Farooq pointed out that at this stage, there has been no indication regarding retrospective adjustments or rebates for contracts that have already been renewed.“The measure appears to apply only to tenancy contracts being processed under the newly announced framework,” he said.“Overall, the response has been positive, with both landlords and tenants seeking clarity on implementation while recognising the broader benefits of the measure.”

Ben said that this rare move by Abu Dhabi to freeze rents will be a huge relief to residents.“In the past, rents have been capped at 5 per cent, most recently in 2018 and that was helpful to people," he said. "This freeze of rents will be a huge relief for many that are struggling in this economy." He was also quick to point out that it is not clear how long these rent freezes will stay in place.

Farooq concluded that measures like this that provide“temporary relief and greater certainty” for residents have generally helped support confidence and market stability,“particularly during periods of heightened uncertainty”. He added that the move highlighted the clear focus on residents and quality of life.“Abu Dhabi has consistently demonstrated a long-term approach to urban development, balancing economic growth with the needs of residents and businesses,” he said.

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