Rent Increase in Abu Dhabi: The 5% Cap Explained
Abu Dhabi's rent increase rules are simpler than Dubai's. There is one key number: 5%. Here is everything you need to know.
The 5% Annual Cap
Resolution No. 14 of 2016 sets a flat cap: landlords cannot increase rent by more than 5% per year. Unlike Dubai (which uses a tiered RERA system), Abu Dhabi applies the same cap to everyone.
- Maximum increase: 5% of current annual rent
- Applies to all residential and commercial properties
- Only applies at contract renewal, never mid-contract
The 2-Month Notice Requirement
Your landlord must give you at least 2 months written notice before your contract renewal date. If they miss this deadline, your contract renews at the current rate with no increase.
Example Calculation
If your current rent is AED 80,000/year:
- Maximum allowed increase: AED 80,000 x 5% = AED 4,000
- Maximum new rent: AED 84,000/year
If your landlord proposes AED 90,000, that is a 12.5% increase — illegal under Abu Dhabi law.
What to Do If Your Landlord Exceeds 5%
- Calculate the maximum — Current rent x 1.05 = the most they can charge
- Respond in writing — Cite Resolution 14/2016 and state the maximum allowed
- Send a formal notice — Use our notice generator
- File a dispute — Contact the ADJD RDSC if the landlord insists
Related Resources
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Legal Disclaimer
RentShield provides general information about UAE tenancy laws and is not a substitute for professional legal advice. For complex legal matters, consult a qualified UAE lawyer. Laws and regulations may change — always verify current requirements with official government sources.