Abolition of Rent Caps in Abu Dhabi
Type
E-journal
Date
30 Mar 2016
Jurisdiction
Abu Dhabi
Taxonomy
General Landlord & Tenant
Copyright
LexisNexis
Relevant company
Al Tamimi & Company
Analysis
Abu Dhabi Law No. 20 of 2006 regulates most landlord and tenant relationships in the Emirate of Abu Dhabi. Until recently the law had protected tenants from rent increases beyond a defined rent cap and only allowed landlords to oppose lease renewals in a limited range of circumstances.
Landlords and tenants were allowed to agree to fix the rent payable under a lease. Where the rent was not fixed, landlords had the right to an annual increment which had been capped in recent years at 5% per annum.
Law No. 4 of 2010 introduced a change to these tenant protections and now allows landlords to oppose lease renewals provided either two months' notice is given in the case of residential premises, or three months' notice is given in the case of commercial premises. The implementation of this change was delayed by three years but took effect from 9 November 2013. It effectively allows landlords to oppose lease renewals if tenants do not agree to the increased rents landlords may now demand.