Authorities in Abu Dhabi announced major updates to the emirate’s real estate regulations aimed at strengthening the emirate’s position as a global investment destination.
The most significant change announced was the right for developers to terminate the off-plan sale and purchase agreements if the buyer fails to meet their contractual obligations, provided specific rules and procedures are followed.
Abu Dhabi Sheikh Zayed Festival fireworks
This removes the the need for court or arbitration proceedings, offering a faster, more efficient way to resolve disputes and reduce investment risk, the Department of Municipalities and Transport (DMT) said.
The update is part of Abu Dhabi’s ongoing efforts to strengthen its position as a global real estate investment hub by fostering a flexible and sustainable legislative environment that supports real estate developers, safeguards investors’ rights, and keeps pace with future growth requirements.
Some of the key updates in the regulations include:
Unified legal framework:
This covers all real estate-related activities, from sale and registration to evaluation and property management, bringing currently unregulated professions under oversight and improving transparency and sector quality.
Owners’ committees replace owners’ associations:
The update covers the formation of Owners’ Committees instead of Owners’ Associations. The formation and functioning of these committees will be governed by decisions issued by the Chairman of the Department of Municipalities and Transport (DMT), with their role limited to advisory and oversight duties.Improved regulatory oversight:
Specialised management companies will be responsible for the operational management of jointly owned properties, ensuring flexible regulation and the sustainability of shared facilities and common areas.
Improved regulatory oversight, empowering the Abu Dhabi Real Estate Centre (ADREC) to ensure balanced, transparent relationships between developers, investors, and property owners.
The update also stated that the schedule of violations and administrative fines will be defined by a resolution issued by the Chairman of the DMT, following approval by the Abu Dhabi Executive Council.
These reforms aim to create a more investor-friendly, accountable, and efficient real estate market aligned with Abu Dhabi’s long-term growth strategy.
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