UAE Rent Increase Rules Explained: Eviction Limits, Abu Dhabi's Rent Freeze and When Landlords Can Legally Raise Rent

Rent increases and eviction notices remain among the most contentious issues in the UAE's rental market. While both Dubai and Abu Dhabi regulate rent adjustments, they do so under markedly different legal frameworks.

Dubai follows an index-based system. Law No. (26) of 2007, as amended by Law No. (33) of 2008, together with Decree No. (43) of 2013, links permissible rent increases to the Real Estate Regulatory Agency (RERA) Rental Index.

Abu Dhabi, by contrast, applies a fixed statutory ceiling. Law No. (20) of 2006, as amended, together with Executive Council Resolution No. (14) of 2016, introduced a flat annual cap on rent increases. However, that position has been temporarily superseded by an Abu Dhabi Real Estate Centre (ADREC) directive issued in June 2026.

This article explains when a landlord may lawfully evict a tenant, the current position on Abu Dhabi's rent cap and temporary rent freeze, and how lawful rent increases are calculated under UAE law.

Eviction Solely to Increase Rent is Not Lawful

In Dubai, a landlord cannot evict a tenant simply because they want to charge a higher rent. Article 25(1) of Law No. (26) of 2007, as amended, provides an exhaustive list of grounds for eviction during the tenancy, including non-payment of rent after 30 days' notice, unauthorised subletting, unlawful use of the property, and damage that endangers the building's safety. A desire to increase rent is not among those grounds.

Even at the expiry of a tenancy, eviction is permitted only in limited circumstances. Article 25(2) allows eviction where the landlord or a first-degree relative intends to occupy the property, where the property is to be sold, or where demolition or substantial reconstruction is required. In each case, the landlord must provide 12 months' notice through a notary public or by registered mail.

Where a landlord seeks to align rent with market levels, the correct legal route is Article 14, which requires 90 days' notice, with any increase calculated in accordance with the RERA Rental Index under Decree No. (43) of 2013. If a landlord evicts a tenant on the grounds of personal use or sale but subsequently re-lets the property at a higher rent, the statutory two-year restriction on re-letting may apply. The Rental Disputes Settlement Centre (RDSC) generally treats such conduct as an abuse of the eviction provisions rather than a legitimate exercise of the landlord's rights.

Abu Dhabi reaches the same outcome through a different legislative framework. Law No. (20) of 2006, as amended, does not recognise a landlord's desire to obtain a higher rent as a valid ground for terminating a registered Tawtheeq tenancy.

The position has become even more significant following the ADREC directive issued in June 2026. Under the temporary measure, any property that is re-let must be offered at the same rent recorded in the most recent registered Tawtheeq contract, regardless of whether the incoming tenant is new. As a result, terminating a tenancy solely to secure a higher rent provides no financial advantage while the measure remains in force and may expose the landlord to proceedings before the Abu Dhabi Rental and Lease Disputes Resolution Committee.

Abu Dhabi's Rent Cap and the 2026 Rent Freeze

Since 2016, Abu Dhabi has operated a fixed rent cap rather than an index-based system. Executive Council Resolution No. (14) of 2016 limited rent increases on renewal to 5 per cent of the existing rent, reinstating a cap that had first been introduced in 2010, removed in 2012, and later restored.

Unlike Dubai's index-based approach, the Abu Dhabi cap applied irrespective of the gap between the existing rent and prevailing market rates. All tenancy contracts must be registered through Tawtheeq, and landlords are required to give 60 days' written notice before the tenancy expires if they intend to increase the rent.

The legal position changed again on June 2, 2026, when the Abu Dhabi Real Estate Centre (ADREC), the regulatory arm of the Department of Municipalities and Transport, temporarily suspended the 5 per cent cap by reducing the permissible increase to zero per cent across residential, commercial and industrial leases.

Accordingly, renewed tenancy contracts must remain at the rent stated in the existing registered contract. Likewise, any new tenancy for a previously occupied property must be registered at the same rent as the most recent Tawtheeq or Tamleeq registration.

The temporary measure does not apply to ADGM communities on Al Maryah Island and Al Reem Island, which operate under their own regulatory framework.

No official end date has yet been announced for the rent freeze. Landlords and tenants should therefore treat references to the previous 5 per cent cap with caution and verify the current position with ADREC before signing or renewing a tenancy agreement.

How Lawful Rent Increases are Calculated

Although Dubai and Abu Dhabi adopt different methods for determining lawful rent increases, neither permits landlords to impose arbitrary increases.

In Dubai, Decree No. (43) of 2013, read together with Law No. (26) of 2007, as amended by Law No. (33) of 2008, determines the maximum permissible increase according to the extent to which the existing rent falls below the market average for comparable properties, as reflected in the RERA Rental Index.

The greater the difference between the current rent and the index, the higher the increase that may be permitted, provided the landlord has complied with the 90-day notice requirement under Article 14. Any increase exceeding the amount permitted by the Rental Index has no legal effect. Where disputes arise, the Rental Disputes Settlement Centre will restrict recovery to the lawful percentage regardless of what the tenancy contract provides.

Abu Dhabi follows a different model. Executive Council Resolution No. (14) of 2016 imposed a fixed 5 per cent cap, irrespective of market value, subject to 60 days' notice and Tawtheeq registration. However, under the current ADREC directive, that permissible increase has been temporarily reduced to zero per cent, meaning no rent increase is presently lawful.

The underlying principle is the same in both Emirates: a rent increase becomes legally enforceable only when the landlord complies with both the applicable statutory formula and the prescribed notice requirements. Failure to satisfy either requirement renders the increase unenforceable.

Conclusion

The UAE's rental laws are designed to balance the interests of landlords and tenants by preventing arbitrary rent increases while providing a clear legal mechanism for legitimate rent adjustments. A landlord cannot evict a tenant merely to obtain a higher rent, regardless of how the reason is presented.

Abu Dhabi's regulatory position remains subject to temporary measures. The standard 5 per cent cap under Executive Council Resolution No. (14) of 2016 has been replaced by a zero per cent increase since June 2, 2026, and no date has yet been announced for the restoration of the previous cap. Landlords and tenants should therefore verify the latest position before issuing or responding to any rent increase or tenancy renewal notice.


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