Abu Dhabi tenancy contract period extended

Abu Dhabi: The legal protection period covering tenancy contracts in Abu Dhabi has been extended from four to five years, while the yearly rent increase will remain capped at 5 per cent, according to a new decision.

General Shaikh Mohammad Bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces and Chairman of the Abu Dhabi Executive Council, has issued the decision amending Article 20 of Law 6 for 2009.

Law 6 amends the earlier Law 20 for 2006 related to property renting and regulating the tenancy relation between landlord and tenant in Abu Dhabi.

The decision aims to rebalance and stabilise the property market through market mechanisms and the principle of supply and demand as many new residential and commercial units enter the market.

The Executive Office also issued decision No. 76 for 2009, setting up a committee to study the economic and social dimensions of the legal regulation of tenancy contracts.

The committee will study the economic, social and financial effects of any amendments on tenancy contracts, the property market and offer and demand forces on all categories of residential units.

It will also study all aspects related to imposing a rent cap and how it affects offer and demand and inflation rates.

The committee will suggest necessary amendments to legislations regulating tenancy relations.

It may seek the help of experts and consultants to help it achieve its targets and discharge its responsibilities, and has to submit its recommendations to the council within four months of the date of issuing the decision.

The committee’s report may pave the way to introducing important amendments to the frameworks and regulations of property leasing in the emirate.

Abu Dhabi tenancy contract period extended Abu Dhabi tenancy contract period extended Reviewed by UAE on 10:44 PM Rating: 5

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