Abu Dhabi rent freeze: why Al Reem and Al Maryah are outside it
Since 2 June 2026 Abu Dhabi has cut the permitted annual rent rise from 5% to 0% for homes, offices and industrial units, until further notice — still in force in September. ADGM communities on Al Reem and Al Maryah islands are excluded and follow their own rules.
On 2 June 2026 the Abu Dhabi Real Estate Centre (ADREC) cut the permitted annual rent increase from 5%, the cap in place since 2016, to zero. The measure covers residential, commercial and industrial property and runs until further notice; at the end of September it has not been lifted. The general rules are in our earlier note on the freeze. This one is about what sits outside it.
What is frozen
- Renewals of existing leases at a 0% increase.
- New leases on previously let units at the previous contract’s rent.
- Homes, offices, retail and industrial space across the emirate.
Industry estimates put the rise in average Abu Dhabi residential rents in 2025 at around 11%; the freeze was justified by cost-of-living pressure and a market where population is growing faster than supply.
The exception: ADGM communities
The measure explicitly excludes communities managed by Abu Dhabi Global Market — Al Maryah Island and Al Reem Island. ADGM is a financial free zone with its own English-law-based legal system and property regime. Al Maryah has long been part of it; Al Reem followed, with property there registered by the ADGM Registration Authority rather than ADREC since January 2025. On those islands the 0% cap does not apply: the lease and ADGM rules govern.
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What it means for a buyer
| Most of the emirate | Al Reem, Al Maryah (ADGM) | |
|---|---|---|
| Increase at renewal | 0% while the measure lasts | Per lease and ADGM rules |
| Re-letting a let unit | At the previous rent | At market |
| Registration | ADREC | ADGM |
A unit outside ADGM let below market today stays below market for as long as the freeze runs, so buy it with a sitting tenant only at a price that reflects that. The ADGM islands gain relative flexibility, though heavy new supply there can cap rents on its own. And since the measure is temporary, a five-to-seven-year model should neither assume zero growth forever nor pencil in the old 5% a year for the next renewals.
Prices, projects and yields on the islands are on the Al Reem Island and Al Maryah Island pages.
Video on this topic
The same subject on the English channel — each clip has a written version of its own.
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