RIYADH: Abu Dhabi has imposed an immediate, temporary freeze on all rent increases, offering a financial lifeline to tenants across residential, commercial, and industrial properties.
The measure, announced on June 2 by the emirate’s Real Estate Center, means all tenancy contract renewals will be processed at a 0 percent increase for the duration of the freeze.
The move is temporary and remains in effect until further notice. It echoes a similar initiative during the COVID-19 pandemic in 2021, when Abu Dhabi Ports froze rents for businesses in its Industrial Cities and Free Zone cluster, benefiting more than 1,400 companies.
“Your rent stays the same,” the Abu Dhabi Real Estate Center said in a post on X, clarifying that the policy applies across all residential, commercial, and industrial renewals in Abu Dhabi. “Any new tenancy contract on a previously rented unit will be offered at the same rental value as the preceding contract,” it added.
The rent freeze comes as the UAE’s real estate sectors show divergent trends.
According to a JLL report, the hospitality sector has faced significant headwinds from disrupted air travel, while the residential market proved resilient after an initial dip in transaction volumes. The industrial sector has also demonstrated strong fundamentals with lower sensitivity to temporary disruptions.
Head of Research for MEA at JLL, Taimur Khan, said: “The first quarter presented a clear divergence in the UAE’s real estate market, with sharp challenges for hospitality and resilience in the living, industrial and logistics sector.”
He added: “This transition phase is a period of strategic adjustment, not a structural decline.”
In Abu Dhabi’s residential market, new project launches helped transaction volumes more than double from a year earlier in the first quarter of 2026, despite an 11.8 percent decline in March.
Meanwhile, tenants sought greater flexibility amid market uncertainty, with total registrations falling 8.4 percent even as new contracts rose 13.4 percent as renters relocated in search of better terms.
Across Abu Dhabi and Dubai, a supply pipeline of roughly 59,000 units is forecast for the remainder of 2026, with nearly 92,000 residential properties forecast for 2027, though supply chain disruptions could delay deliveries.
The government’s 1 billion dirhams ($272.29 million) economic incentives package is supporting hotel liquidity through fee deferrals, while the industrial sector posted double-digit rental growth in the first quarter.
Dubai’s industrial market recorded 12.8 percent annual rental growth, with Abu Dhabi achieving 18.2 percent growth, reflecting sustained demand for warehouse and logistics facilities.
