ME-Alliance

ME-ALLIANCE LEGAL UPDATE

Temporary Suspension of Annual Rent Increases in the Emirate of Abu Dhabi

As part of the Abu Dhabi Government’s ongoing efforts to enhance the stability of the Abu Dhabi real estate market, especially in the current circumstances, and to provide a clearer and more reliable ecosystem for residents and businesses, in a way that consolidates the quality of life and enhances the long-term competitiveness of the Emirate.

 
Pursuant to Article (16) of Law No. (20) of 2006 on the Rental of Premises and Regulating the Rental Relationship between Landlords and Tenants in the Emirate of Abu Dhabi, which stipulates that the agreed rent shall be binding on the contractors for the duration of the contract, and the landlord may increase the rent only once a year and by a percentage not exceeding (5%) of the agreed rent, provided that this percentage may be increased, decreased or cancelled by a decision of the Chairman of the Executive Council of the Emirate of Abu Dhabi.

 

Based on the Executive Council’s decision issued in this regard, ADRC issued the following:

• Suspend the application of any increase in the rental value of all rent contracts in the Emirate until further notice.

• It is not permissible to increase the rent value when renewing existing contracts.

• It is not permissible to increase the rent value when executing new rent contracts.
• Applying the rental value stated in the last registered rent contract as the basis for the renewed or new rent contracts.
• This decision applies to all rent contracts in the Emirate (residential, commercial, and others).

 

This decision does not apply to properties on Al Reem Island and Al Maryah Island as they are subject to the provisions of the Abu Dhabi Global Market Authority’s

 

If you have any questions about this topic, please do not hesitate to contact us.

 

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