Abu Dhabi DMT Freezes Rent Increases to Stabilize Property Market

The Abu Dhabi Department of Municipalities and Transport (DMT) has introduced a temporary freeze on rent increases across the emirate. The measure applies to both residential and commercial leases, effectively halting planned price hikes for the duration of the order. Regulatory Oversight and Implementation The directive prohibits landlords from implementing rent escalations upon the renewal of existing tenancy contracts. While Abu Dhabi law typically allows for an annual rent increase of up to 5%, this temporary measure suspends that provision to maintain market stability. The DMT confirmed that all lease renewals must adhere to the rates established in previous agreements until the suspension is lifted. The decision comes amid a period of high occupancy and rising demand within Abu Dhabi’s real estate sector. By freezing rates, authorities aim to prevent speculative pricing and protect tenants from sudden cost-of-living adjustments. The DMT has not yet provided a specific expiration date for the measure, stating it will monitor market dynamics to determine the necessary duration of the freeze. Impact on Residential and Commercial Markets The freeze covers a broad range of…