Abu Dhabi Rent Increase Cap 2026: How the New ADREC Renewal Rules Work

Abu Dhabi has changed how residential rents are renewed. Under the Rent Renewal Framework issued by the Abu Dhabi Real Estate Centre (ADREC), in force since 1 November 2026, a landlord can no longer reset the rent at renewal to whatever the market will bear. The increase is capped, and from 30 January 2027 the cap is set by an official Rental Index.

This article sets out the rules as ADREC published them in its Residential Rental Renewal Guide (Version 1), in plain terms, with the dates, the percentages and a worked example. It is written for tenants checking a renewal offer and for landlords and investors who need to model rental income on a Tawtheeq-registered property.

The Abu Dhabi rent increase cap at a glance

• The framework applies to residential contracts registered in Tawtheeq that expire on or after 1 November 2026.
• Contracts expiring from 1 November 2026 to 29 January 2027: the maximum increase at renewal is 5%.
• Contracts expiring from 30 January 2027: the maximum is set by the ADREC Rental Index, between 0% and 20%.
• A landlord who wants to change the rent must give written notice at least 60 days before the contract expires.
• The maximum increase is confirmed 90 days before expiry, and any rent-increase notice must be based on that result.
• The cap is binding. Landlord and tenant can agree any increase below it, including no increase.

Which properties the new rules cover

The framework covers every type of residential unit: villas, townhouses, apartments (including studios), duplexes, triplexes and penthouses. The contract must be registered in Tawtheeq, Abu Dhabi's official system for registering tenancy contracts, which was set up under Executive Council Chairman's Resolution No. 4 of 2011.

It does not apply to:

• non-residential leases;
• holiday homes regulated by the Department of Culture and Tourism (DCT);
• residential contracts inside Abu Dhabi Global Market (ADGM), which ADGM regulates.

A brand-new tenancy contract is not capped when it is signed. It comes under the framework when it is renewed.

The framework only limits the rent increase. It does not change a tenant's right to renew, a landlord's right to end a tenancy or the rules on eviction. Those still come from Law No. 20 of 2006 on the Rental of Premises and the Regulation of the Lease Relationship (the Tenancy Law).

The three rent periods and which one applies to you

The rule that applies to a renewal depends on the expiry date of the current contract.

Contract expires	Rule	Maximum increase
Before 1 November 2026	Temporary 0% period	0%
1 November 2026 to 29 January 2027	5% transition period	5%
30 January 2027 onwards	Rental Index period	0% to 20%, by rent increase category

There is one transitional detail inside the Index period. For contracts expiring from 30 January 2027 to 31 October 2027, the 0% category does not apply yet, and rents in that category can rise by up to 5%. For contracts expiring from 1 November 2027, that category becomes 0%.

What the ADREC Rental Index is

The Rental Index is a reference rent published by ADREC. It is based on registered rents for similar homes of the same asset type (a villa, for example) and layout (a four-bedroom, for example). It is used only to work out the maximum increase at renewal. It does not set the rent for any unit.

The Index is calculated on an annual rent basis and is built from comparable contracts, both new and renewed:

• Apartments, duplexes, triplexes and penthouses: calculated for each layout from comparable rented units.
• Villas and townhouses: calculated for each layout, using comparables at community, compound or project level depending on where the home is.

ADREC will update the Index and its methodology from time to time as market data comes in. Any change to the method will be published in an updated version of the guide.

Maximum rent increase by category

ADREC compares your current annual rent with the Index value for your unit type and layout. The gap decides your category.

Current rent compared with the Index	Maximum rent increase
Above the Index, or up to 5% below it	5% for contracts expiring up to 31 October 2027; 0% from 1 November 2027
More than 5% and up to 15% below	5%
More than 15% and up to 25% below	10%
More than 25% and up to 40% below	15%
More than 40% below	20%

The gap is worked out as (Index value minus current annual rent) divided by the Index value, and it is rounded to two decimal places only. A rent 15.00% below the Index sits in the 5% category. A rent 15.01% below sits in the 10% category.

Worked example: how to calculate your maximum rent

Take a one-year contract with an annual rent of AED 78,000, where the Index value for comparable units is AED 100,000.

1. The gap is (100,000 minus 78,000) divided by 100,000, which is 22.00% below the Index.
2. 22.00% falls in the "more than 15% and up to 25% below" band, so the maximum increase is 10%.
3. 10% of AED 78,000 is AED 7,800.
4. The maximum rent for a 365-day renewal is AED 85,800.

The calculator adjusts for contract length. In ADREC's second example, a current contract registered for 180 days has a contract value of AED 38,465.75 for that term. A 10% maximum adds AED 3,846.58, so the maximum rent for a 180-day renewal is AED 42,312.33. If you enter a different expiry date for the new contract, the calculator rescales the result to that length.

Key dates: when the result is confirmed and when notice is due

Every date is counted in days before the contract expires.

Days before expiry	What happens
More than 90	The calculator result is an estimate and can change as the Index is updated. It cannot be enforced. Property data corrections must be approved by ADREC before day 90 to affect this renewal.
90	The result is confirmed and will not change for that renewal. Only this result can be enforced.
90 to 60	Landlord and tenant review the renewal against the confirmed result. A rent-increase notice should go out in this window.
60	Statutory deadline for written notice of any change to the contract terms, including the rent, under Article 20 of the Tenancy Law.
Expiry	The renewed contract takes effect on the agreed terms, provided notice was given in time. Any increase must stay within the maximum.

If neither side gives notice at least 60 days before expiry, the contract renews on the same terms. In rare cases the outcome can still change after day 90, for example where an active block applies to the unit or contract, or where ADREC approves an exception.

How to check your maximum rent increase

ADREC runs an online Rental Index Calculator on its website. It needs three inputs, all printed on the tenancy contract: the contract number, the contract end date and the current contract value. You can add the expiry date of the new contract if you want the result adjusted to the new term.

The calculator returns three figures:

• Maximum rent allowed for your renewal: the highest rent the landlord may charge for the renewal term.
• Rental Index for comparable units: the range of reference annual rents for similar properties of the same asset type and layout.
• Maximum rent increase percentage: the highest percentage the rent may rise, taken from the applicable category.

Check it early, because the result is only an estimate until day 90. Then check it again on day 90, because that is the figure that counts.

How to renew a Tawtheeq contract on TAMM

Landlords or their authorised representatives can renew a residential Tawtheeq contract digitally through the TAMM platform:

1. Open the tenancy contract renewal service on TAMM and sign in with UAE PASS, or visit a service centre.
2. Submit the application with the required documents.
3. Pay the applicable fees.
4. Receive the renewed tenancy contract.

Exceptions where the Index is not used

In three cases a fixed maximum applies instead of the Index calculation:

• Uncommon property types (5%): where ADREC cannot generate a statistically reliable Index value, the maximum increase is 5%.
• Bulk contracts (5%): where one Tawtheeq contract with one value covers several units, the maximum is 5% for the contract and all its units. For the Index to apply, each unit needs its own tenancy contract.
• Missing or invalid unit data (0%): where the registered unit type, classification or number of bedrooms is missing, invalid or contradictory, no Index value is produced and no increase is allowed until the record is fixed.

How to correct wrong property details

A wrong bedroom count or unit type on the ADREC record can freeze a renewal at 0% or place the unit in the wrong Index band. The fix is the Amend Property Details service on TAMM. It is free, and landlords, property managers and their authorised representatives can apply.

The service can correct the unit number or name, unit type, unit use, floor number, number of bedrooms, number of bathrooms and the Premise ID by TAQA. For changes to unit type or bedrooms, a surveying company listed on ADREC's list of qualified surveying companies must first review the approved drawings and complete the amendment template. Surveyors outside that list cannot be used. The approved drawings are those issued by the Department of Municipalities and Transport (DMT).

Timing matters. ADREC must approve the amendment more than 90 days before the contract expires for it to affect the current renewal. If approval comes later, it applies from the following renewal.

What landlords and tenants should do

Landlords and their representatives should confirm that the registered property and unit details are accurate, use the calculator to find the maximum increase, and send written notice at least 60 days before expiry if they intend to raise the rent. The renewal is then completed through Tawtheeq.

Tenants should run the calculator early, confirm the unit details on record are correct, and compare any proposed increase with the confirmed maximum. A landlord can offer a lower increase or none at all, so the maximum is a ceiling and not a figure the tenant has to accept as a starting point.

Disputes, help and services still to come

Any rent dispute between landlord and tenant goes to the competent court or rental dispute authority, and a court order overrides the outcomes described in ADREC's guide. For questions about the calculator or the status of an application, ADREC's call centre is on 02 301 7200, and its website is adrec.gov.ae.

ADREC has also announced two services marked as coming soon: a rental valuation request for units with attributes the Index does not capture, such as renovations, sea views or top-floor locations, and a report that lets landlords and property managers get renewal outcomes for many contracts at once.

Our view: what the rent cap means for investors

For anyone who owns a let apartment or villa in Abu Dhabi, renewal income is now modelled against a published number. A unit let well below the Index can step up by 5% to 20% a year until it reaches market. A unit let at or above the Index is limited to 5% for contracts expiring up to 31 October 2027 and to nothing after that. Gross yield projections for 2027 renewals should use these caps, not a market guess.

Two practical points follow. First, the Index is built from layout-level comparables, so a unit with a sea view, a renovation or a top-floor position is compared with plainer neighbours until ADREC launches its valuation service. Second, a wrong bedroom count or unit type on the record can cost a full renewal cycle, because corrections only count if they are approved more than 90 days before expiry. We recommend checking the registered details on every unit in a portfolio now.

For buyers of off-plan property who plan to let on handover, the first lease is a new contract and is not capped when it is signed. The cap starts to bite at the first renewal, so yield assumptions beyond year one should reflect it. Our advisory team models this for clients across off-plan launches and rental stock in Abu Dhabi, and you can also read our complete guide to off-plan property in Abu Dhabi.

Frequently asked questions

How much can a landlord increase rent in Abu Dhabi in 2026?

For residential contracts expiring from 1 November 2026 to 29 January 2027, the maximum increase at renewal is 5%. For contracts expiring from 30 January 2027, the maximum is set by the ADREC Rental Index and ranges from 0% to 20%, depending on how the current rent compares with the Index.

When does the new Abu Dhabi rent renewal framework start?

It took effect on 1 November 2026 and applies to residential contracts expiring on or after that date.

What is the ADREC Rental Index?

It is a reference rent published by the Abu Dhabi Real Estate Centre, based on registered rents for similar homes of the same asset type and layout. It is used to work out the maximum rent increase at renewal. It does not set the rent for any unit.

How much notice must a landlord give to raise the rent in Abu Dhabi?

At least 60 days' written notice before the contract expires. The notice should be based on the calculator result, which is confirmed 90 days before expiry, so in practice it goes out between 90 and 60 days before expiry. With no notice, the contract renews on the same terms.

Can a landlord charge more than the maximum rent increase?

No. The maximum is binding and enforceable. Landlord and tenant can agree any increase below it, including no increase.

How do I check my maximum rent increase in Abu Dhabi?

Use the Rental Index Calculator on the ADREC website. You need the contract number, the contract end date and the current contract value, all of which appear on the tenancy contract.

Does the rent cap apply to commercial leases or holiday homes?

No. It does not apply to non-residential leases, holiday homes regulated by the Department of Culture and Tourism, or residential contracts inside Abu Dhabi Global Market.

What if my calculator result shows 0% because my unit data is wrong?

If the unit type or number of bedrooms is missing or invalid, no Index value is produced and a 0% increase applies. Correct the record through the Amend Property Details service on TAMM. If ADREC approves the change more than 90 days before expiry, it applies to the current renewal. Otherwise it applies from the next one.

Source: ADREC, Residential Rental Renewal Guide, Version 1, effective 1 November 2026 (adrec.gov.ae). This article is general information and not legal advice. ADREC may update its guide, so check the current version before relying on a date or percentage.