Landlords and real estate firms circumventing Abu Dhabi's rent freeze decision, complain tenants

A number of residential unit tenants in Abu Dhabi complained that some landlords and real estate companies are circumventing the decision to freeze rental increases for residential, commercial, and industrial properties under the decree announced in early June 2026, which stipulated that no increase shall be imposed on the tenant when renewing the lease contract throughout the period the decision remains in effect.

Tenants explained that some landlords demanded they pay additional amounts over the lease contract value to document it with relevant authorities, and settle the financial value in a single payment rather than 4 installments as was the case before the increase freeze decision, or renew the expired contract at the same rental value for only 3 months.

A tenant A.B, said that when renewing his residential lease contract, the real estate company demanded he pay the minimum increase of 5% and when he tried to negotiate with them, they told him that if he did not pay the increase, the contract would be cancelled and he would be required to vacate the unit the following year, which prompted him to accept.

Another tenant known as Alaa Kamal said that the landlord requested that he pay the annual house rent value in a single payment amounting to Dhs63,000 upon renewal, otherwise he must vacate the apartment, whereas in previous years he paid the rent in 4 installments, and the leasing company employees suggested he extend the contract for only 3 months at the previous value.

It is worth noting that the real estate sector in Abu Dhabi has witnessed remarkable growth in demand over the past years, with occupancy rates reaching record levels, causing an increase in new rental prices by 15% across the emirate, and 23% in investment areas compared to 2025.