In a significant move to stabilize the property market, the Abu Dhabi Real Estate Centre has officially slashed the annual rental increase cap from 5 per cent to 0 per cent. This immediate policy change applies across all residential, commercial, and industrial properties, mandating that lease renewals and new agreements must now align with the rates documented in the latest Tawtheeq contract. By effectively halting rent hikes, the regulator aims to alleviate the financial strain on tenants who have faced sharp market increases, where new lease prices surged by up to 23 per cent in key investment zones over the past year.

Industry experts have largely welcomed the decision, noting that it fosters a more sustainable relationship between landlords, tenants, and business owners. For families and long-term residents, the freeze removes the looming threat of being priced out of their neighborhoods, allowing for better financial planning and reduced disruption. Furthermore, the inclusion of commercial and industrial sectors provides small to medium-sized enterprises with much-needed predictability for their operational costs. Ultimately, this regulatory shift underscores Abu Dhabi’s commitment to balancing market growth with community stability, encouraging long-term investment and boosting overall confidence in the capital's real estate sector.