Abu Dhabi’s recent decision to implement a temporary rent freeze has been welcomed by tenants across the emirate. While existing residents are relieved to avoid annual rent increases, industry experts suggest that new tenants moving into previously occupied properties could be the biggest beneficiaries of the policy.

The rent freeze, introduced by the Abu Dhabi Real Estate Centre (ADREC), reduces the allowable annual rental increase from 5% to 0% for residential, commercial, and industrial properties. The rule applies not only to contract renewals but also to new tenancy agreements for previously rented units, which must now be offered at the same rental value as the preceding contract.

According to real estate professionals, existing tenants gain stability and protection from rising housing costs. However, the most significant financial advantage may go to new tenants. Previously, landlords could reset rents to current market rates when a tenant vacated a property, often resulting in increases of 15% to 20% or more. The new regulation prevents these sharp jumps, allowing incoming tenants to secure homes at rates that may be considerably below current market levels.

The move comes after years of strong rental growth in Abu Dhabi, driven by high occupancy levels and increasing demand. Officials say the policy aims to support housing affordability, enhance market stability, and provide greater financial certainty for residents and businesses during a period of regional uncertainty.

While landlords may face limitations on rental income growth in the short term, the measure is expected to strengthen tenant retention and create a more predictable real estate environment. As Abu Dhabi continues to attract new residents and businesses, the rent freeze could play a key role in maintaining the emirate’s competitiveness and quality of life.