Abu Dhabi announced a freeze on rent increases across residential, commercial and industrial properties. The decision is being seen as a greater relief for the Thousands of Indian residents in the region. In an official statement, the Abu Dhabi Real Estate Centre (ADREC) has confirmed that landlords will not be permitted to raise rents for existing tenants. The measure also applies to new tenants.
According to the new directive, all tenancy contract renewals will be processed with a 0 per cent rent increase. The existing rental mechanism under which landlords could increase rents by up to 5 per cent annually will be suspended after this decision.
With immediate effect, tenants renewing their leases will continue paying the same rent as before. Rent remains one of the largest expenses for expatriate households in the UAE. The latest decision is expected to provide meaningful financial relief, particularly for Indian families, who make up one of the country’s largest expatriate communities.
The freeze is also likely to benefit business owners operating offices, retail outlets and industrial facilities by helping them manage operating costs more effectively.
Pyush Lohia, Managing Director of Lohia Worldspace, described the policy as an important step towards improving predictability for tenants. “The decision could ease financial pressure on households, reduce relocation concerns among expatriate families and further strengthen Abu Dhabi’s attractiveness as a destination for international professionals” he said.
With this decision, the tenants across Abu Dhabi can expect rental rates to remain unchanged under the current framework.