Abu Dhabi announces first rental index for real estate
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Abu Dhabi Rental Index 2026: Rents by Area, the Rent Freeze and Yields

In short

The Abu Dhabi rental index shows rents levelling off in 2026. ValuStrat put average rents at AED 121,500 a year for apartments and AED 258,000 for villas in Q3 2026, up only 1.5% and 1.8% in a year and flat on the quarter, after ADREC recorded new-lease prices up 17% for apartments in H1 2026. Since June 2026, a temporary rent freeze has replaced the 5% cap with 0% on eligible renewals.

ValuStrat via The National, Q3 2026 Ā· ADREC, H1 2026 Ā· Bayut, H1 2026

AED 121,500per year

Average apartment rent in Abu Dhabi

Source: ValuStrat, Q3 2026

0%rent increase cap

Temporary freeze on eligible renewals since June 2026

Source: ADREC via The National and Bayut

+17%new-lease prices

Apartments, year on year

Source: ADREC, H1 2026

Abu Dhabi announces first rental index for real estate

Abu Dhabi rents: stable in 2026 after strong growth, with a 0% cap on eligible renewals.Photo: Ā© VALORISIMO

What does the Abu Dhabi rental index show in 2026?

Abu Dhabi rents rose sharply in 2025 and early 2026, then flattened: by Q3 2026, average rents were only 1.5% to 1.8% higher than a year earlier.

There is no single published “rental index” number for the emirate. Investors instead combine three sources: the Abu Dhabi Real Estate Centre (ADREC), which registers leases through Tawtheeq and publishes market reports and dashboards; ValuStrat, which values a fixed basket of homes each quarter; and portal reports such as Bayut’s, which track advertised rents by area.

They tell a consistent story. ADREC’s H1 2026 report shows new-lease prices up 17% for apartments and 9% for villas year on year, with month-on-month rent growth peaking at 1.6% in December and January. By the third quarter, ValuStrat found average apartment rents of AED 121,500 a year (+1.5%) and villa rents of AED 258,000 (+1.8%), with no change on the previous quarter.

IndicatorApartmentsVillasPeriodSource
Average annual rentAED 121,500AED 258,000Q3 2026ValuStrat
Annual rent change+1.5%+1.8%Q3 2026 vs Q3 2025ValuStrat
Quarterly rent changeflatflatQ3 vs Q2 2026ValuStrat
New-lease prices, all Abu Dhabi+17%+9%H1 2026, year on yearADREC
New-lease prices, investment zones+21%+16%H1 2026, year on yearADREC

Sources: ValuStrat Abu Dhabi review Q3 2026 via The National (29 Oct 2026); ADREC, Abu Dhabi Real Estate Market Report H1 2026 (via Zawya).

What is the Abu Dhabi rent freeze and how does it work?

Since early June 2026, landlords in Abu Dhabi cannot raise rents on eligible renewals: ADREC replaced the 5% annual cap with 0%, until further notice.

The National reports a temporary zero cap from 2 June that applies to residential, commercial and industrial property. Bayut dates the measure to 3 June and explains that renewals and new leases must use the last rent registered in Tawtheeq, while leases registered before the freeze are not affected. Abu Dhabi had capped renewal increases at 5% a year since 2016.

Who is covered

Bayut’s guide to the rules says the freeze covers apartments, villas and townhouses as well as offices and retail units. A property already let cannot be re-listed at a higher rent simply because a new tenant signs. Areas overseen by Abu Dhabi Global Market, including Al Maryah Island and Reem Island, follow a different legal framework, so tenants and landlords there should check the rules that apply to their building.

What it means for investors

For owners, the freeze locks in current income and removes rent growth from short-term projections. For buyers, it puts the focus on the rent a property already earns: a unit let below market will stay there until the freeze ends. Ask for the registered Tawtheeq contract before you buy a tenanted home.

How much is apartment rent in Abu Dhabi by area?

Annual apartment rents range from about AED 57,000 in Khalifa City to AED 230,000 in The Marina, according to Bayut’s H1 2026 report.

A one-bedroom costs about AED 94,000 a year on Al Reem Island, AED 111,000 to AED 113,000 on Al Raha Beach and Yas Island, and AED 133,000 on Saadiyat. Mainland districts such as Hamdan Street and Al Nahyan remain cheaper, with one-bedrooms at AED 66,000 to AED 74,000. Bayut describes apartment rents in H1 2026 as mixed: The Marina’s two-bedrooms rose 4.65% and Al Khalidiyah about 3.8%, while other areas held steady.

AreaAverage rentStudio1-bed2-bed3-bed
The MarinaAED 230,000n/aAED 175,000AED 259,000AED 295,000
Saadiyat IslandAED 191,000n/aAED 133,000AED 252,000AED 282,000
Yas IslandAED 141,000n/aAED 113,000AED 176,000AED 235,000
Al Raha BeachAED 141,000n/aAED 111,000AED 146,000AED 187,000
Corniche AreaAED 132,000n/aAED 104,000AED 132,000AED 145,000
Al KhalidiyahAED 125,000AED 50,000AED 84,000AED 116,000n/a
Al Reem IslandAED 121,000AED 70,000AED 94,000AED 128,000n/a
Hamdan StreetAED 90,000AED 56,000AED 74,000AED 86,000n/a
Al NahyanAED 77,000AED 48,000AED 66,000AED 83,000n/a
Al ShamkhaAED 63,000AED 47,000AED 63,000AED 70,000n/a
Khalifa CityAED 57,000AED 39,000AED 59,000AED 104,000n/a

Source: Bayut, Abu Dhabi Rental Market Report H1 2026 (average annual advertised apartment rents).

For more on a district, see our Al Reem Island area guide or Yas Island area guide.

How much does it cost to rent a villa in Abu Dhabi?

Villa rents rose in most communities in H1 2026, from about AED 151,000 a year in Al Reef to AED 642,000 on Saadiyat Island.

Bayut recorded villa rent increases of about 7% on Saadiyat Island, 7.13% in Al Muntazah, 6.57% in Shakhbout City and almost 7% in Khalifa City, where three-bedroom rents rose 7.24%. Yas Island villa rents rose 4.17% and Al Raha Gardens 2.37%. ValuStrat’s average villa rent of AED 258,000 a year sits between the mid-tier and luxury communities.

AreaAverage rent3-bed4-bed5-bedChange vs H2 2025
Saadiyat IslandAED 642,000n/aAED 558,000AED 762,000about +7%
Yas IslandAED 333,000n/aAED 351,000AED 425,000+4.17%
Al BateenAED 256,000n/aAED 274,000n/an/a
Al MuntazahAED 242,000AED 223,000AED 261,000AED 286,000+7.13%
Al ShamkhaAED 230,000AED 216,000AED 225,000AED 248,000n/a
Khalifa CityAED 220,000AED 206,000AED 214,000n/aalmost +7%
Al Raha GardensAED 208,000AED 184,000AED 205,000AED 254,000+2.37%
Shakhbout CityAED 182,000AED 132,000AED 150,000AED 180,000+6.57%
Al ReefAED 151,000AED 133,000AED 157,000AED 174,000nearly +4%

Source: Bayut, Abu Dhabi Rental Market Report H1 2026 (average annual advertised villa rents; changes as stated in the report).

Which Abu Dhabi areas give the best rental yields?

Affordable apartment areas lead, with gross yields of 7% to 8%; prime islands yield 4% to 5%.

Bayut’s Q3 2026 report shows Al Reef at 7.9%, Rabdan at 7.6% and Al Ghadeer at 7.4% for affordable apartments, while Al Maryah Island stands out among luxury areas at 7.0%. Masdar City offers 6.7% and Al Reem Island 6.1%. Saadiyat Island has the highest rents but the lowest yields because prices are much higher.

AreaSegmentGross yield
Al ReefAffordable apartments7.9%
RabdanAffordable apartments7.6%
Al GhadeerAffordable apartments7.4%
Al Maryah IslandLuxury apartments7.0%
Masdar CityMid-tier apartments6.7%
Al Reem IslandMid-tier apartments6.1%
Yas IslandLuxury apartments5.6%
Saadiyat IslandUltra-luxury apartments / villas4.6% / 4.3%

Source: Bayut, Abu Dhabi Sales Market Report Q3 2026 (gross yields from advertised prices and rents).

Gross yields do not deduct service charges, maintenance or vacancy. Our guide to service charges in Dubai and Abu Dhabi shows what to deduct, and our Abu Dhabi price per sqm study gives the purchase side of the calculation.

How big is Abu Dhabi's rental market?

ADREC counted about 233,000 active residential leases in H1 2026, worth AED 9.3 billion, 8% more than a year earlier.

Contract volumes grew more slowly than values (+2%), which suggests that higher rents rather than new tenancies drove the increase. Investment zones, where foreigners can own property, saw the fastest new-lease growth: 21% for apartments and 16% for villas. ADREC estimates the emirate’s residential stock at about 409,000 units.

Lease market indicatorFigurePeriod
Total lease valueAED 9.3bn, +8% year on yearH1 2026
Active residential lease contractsabout 233,000 (volume +2%)H1 2026
Peak month-on-month rent growth1.6%December 2025 and January 2026
Residential supply (stock)about 409,000 unitsH1 2026
Additional units projectedabout 71,000, peaking at about 21,800 in 2028to 2030

Source: ADREC, Abu Dhabi Real Estate Market Report H1 2026 (via Zawya).

Supply is the next test

ValuStrat expects about 13,534 new homes in 2026, of which 3,508 were delivered in the first nine months, and 40,510 by 2030. ADREC projects about 71,000 additional units by 2030, with deliveries peaking in 2028. As these homes reach the market, tenants will have more choice, which should keep rents stable even after the freeze is lifted.

What costs do tenants pay on top of the rent in Abu Dhabi?

Tenants who are not UAE nationals pay a municipality fee of 5% of the annual rent, collected through the utility bill.

Bayut’s guide explains that the fee applies to all tenancy contracts, with a minimum of AED 450, and that registering the lease in Tawtheeq enrols the tenant automatically. On a AED 120,000 rent, the fee is AED 6,000 a year (Valorisimo arithmetic). Tawtheeq registration and renewal each cost AED 50 for economic lease contracts. Tenants also pay utilities and, in many towers, district cooling.

What next for Abu Dhabi rents?

Expect flat rents while the freeze lasts, then moderate growth shaped by new supply.

Demand remains strong: ADREC recorded investors from 121 nationalities in the first nine months of 2026, and The National notes that ADGM employed about 50,000 professionals in H1 2026, up 34%. But with tens of thousands of homes due by 2030, the double-digit rent rises of 2025 are unlikely to return quickly. For landlords, the priority is keeping good tenants; for tenants, it is a window to secure a home at a fixed rent.

Watch out

Advertised rents from portals can differ from registered Tawtheeq rents, and ADGM areas follow their own rules. Check the registered contract and the framework that applies to the building before relying on any rent figure.

Frequently asked questions

Is there an official rental index in Abu Dhabi?

ADREC registers leases through Tawtheeq and publishes market reports and dashboards rather than a single index figure. Its H1 2026 report shows new-lease prices up 17% for apartments and 9% for villas year on year.

Yes. Since early June 2026, ADREC’s temporary measure replaced the 5% annual cap with 0%, so eligible renewals cannot increase until further notice. Areas under Abu Dhabi Global Market, including Al Maryah and Reem islands, follow a different framework.

ValuStrat put average rents at AED 121,500 a year for apartments and AED 258,000 for villas in Q3 2026, up 1.5% and 1.8% year on year.

Among the areas in Bayut’s H1 2026 report, Khalifa City apartments average AED 57,000 a year and Al Shamkha AED 63,000. For villas, Al Reef is the cheapest at AED 151,000.

Tenants who are not UAE nationals pay a municipality fee of 5% of the annual rent, with a minimum of AED 450, added to the utility bill. Tawtheeq registration costs AED 50.

Figures are indicative as of the date shown: check them with official sources before any decision.

What rent can your property earn?

Send us the address and size, and we compare it with registered and advertised rents nearby, on WhatsApp at +971 54 236 4178.