The emirate of Abu Dhabi reintroduced a 5% cap on the annual rent increase, stated the Department of Municipal Affairs and Transport on Tuesday.

AIming at protecting the relationship between tenants and landlords, the Department of Municipal Affairs and Transport as announced a maximum of 5% rent increase annually. The decision took many by surprise since rents in Abu Dhabi are much rather falling than increasing and rent increases are not expected for quite some time.

The rent cap was scrapped three years ago after its introduction in 2006. Originally standing at 7%, the rent cap was cut to 5% in 2010 as rent rates were already falling; a abolished altogether in 2013 just as rents started rising again.