Landlords in Abu Dhabi are increasingly adopting flexible lease arrangements and tenant-focused incentives to attract and retain renters amid the emirate’s ongoing rent freeze, according to a senior property executive. The policy, designed to stabilize the market and ease rental pressure on tenants and businesses, has shifted competition away from annual rent hikes toward enhancing occupancy and long-term tenancy.

Khaled Almahri, a property market expert, explained that despite limitations on rent increases, landlords continue to offer incentives. However, these incentives have become more targeted, focusing on improving the overall leasing experience rather than simply lowering headline rents. “Rather than relying on rent increases, many landlords are focusing on attracting and retaining tenants by offering greater flexibility and added value,” he said.

The adjustment in leasing strategies coincides with ongoing expansion in Abu Dhabi’s real estate market. Data from the Abu Dhabi Real Estate Centre (Adrec) show that real estate transactions in the emirate reached 117 billion dirhams during the first half of 2026, more than double the volume recorded in the same period a year earlier. Furthermore, foreign direct investment in the sector surged by 309 percent to 13.8 billion dirhams, signaling strong investor confidence amid the regulatory environment.

The rent freeze is a temporary measure aimed at market stabilization following a period of rapid rental growth. Analysts have noted that such measures are most effective when complemented by a steady supply of housing and a clear plan for eventual policy normalization to avoid long-term distortions in the market.

Almahri highlighted the shift in landlord priorities, noting that the focus has moved away from maximizing yearly rent increases toward maintaining high occupancy levels, minimizing vacancies, and fostering longer-term tenant relationships. Rather than providing upfront rent discounts, landlords are increasingly negotiating payment schedules, lease conditions, and renewal options to enhance the attractiveness of their properties.

He also pointed out differences among landlords, with large institutional owners emphasizing professional property management, service quality, and efficient lease renewals, while private landlords tend to exercise more flexibility in individual lease negotiations.

The moderation of annual rental growth has intensified competition among landlords. “With rental increases temporarily restricted, landlords are placing greater emphasis on attracting and retaining tenants through competitive pricing, flexible lease terms, and well-maintained properties rather than relying on annual rent increases,” Almahri said, reflecting a broader trend in the emirate’s evolving rental market.