Abu Dhabi Enhances Real Estate Transparency With New Rules

Abu Dhabi, UAE: The Department of Municipalities and Transport (DMT) has announced a new package of administrative decisions aimed at strengthening transparency, governance, and operational efficiency across Abu Dhabi’s real estate sector.

The measures implement provisions of Law No. (3) of 2015, as amended by Law No. (2) of 2025, and introduce a comprehensive regulatory framework addressing key aspects of real estate development, ownership, and investor protection.

Strengthening governance and investor confidence

The newly issued decisions form part of Abu Dhabi’s broader strategy to reinforce its position as a leading global real estate investment destination. By introducing a more flexible and clearly defined legislative environment, the emirate continues to align its regulatory framework with international best practices while supporting sustained market growth.

The framework is designed to balance the interests of developers, investors, and property owners, ensuring clearer contractual relationships, enhanced procedural efficiency, and stronger protections for all stakeholders.

His Excellency Rashed Al Omaira, Director General of the Abu Dhabi Real Estate Centre (ADREC), said:

The issuance of this package of executive and regulatory decisions represents an important step in advancing the mechanisms for implementing Law No. (3) of 2015 (as amended by Law 2 of 2025) governing the real estate sector through the adoption of flexible executive tools that can be adapted to market dynamics. These decisions enhance the efficiency of sector regulation and reinforce the principles of transparency and governance, supporting investor confidence and strengthening Abu Dhabi’s position as a leading real estate destination. They establish a clear executive framework ensuring balanced contractual relationships, strengthening the protection of all parties’ rights, and supporting the speed and efficiency of procedures applied across the market.

Four key decisions across the real estate lifecycle

The package comprises four administrative decisions that collectively address critical stages of the real estate development and management cycle.

These include controls governing escrow account disbursements, regulations for jointly owned property management, the introduction of unified bylaws for owners’ committees, and the establishment of compensation mechanisms in cases of purchaser breach under off-plan sales agreements.

Together, these measures provide a more structured and transparent framework for managing real estate projects, from development through to ownership and operation.

Decision No. (24) of 2025 introduces stricter controls on disbursements from real estate project escrow accounts prior to achieving 20 percent project completion.

The decision establishes clear requirements tied to bank guarantees and approved cost estimates, ensuring that funds are used appropriately and safeguarding purchaser investments against misuse.

Decision No. (25) of 2025 focuses on jointly owned properties, setting out a comprehensive framework for the management of shared assets and common facilities.

The regulation defines the roles and responsibilities of owners, developers, and property management companies, while strengthening oversight through the Abu Dhabi Real Estate Centre. This approach enhances operational efficiency, ensures long-term asset quality, and supports sustainable property management practices.

Decision No. (26) of 2025 introduces a unified bylaw governing owners’ committees across the emirate.

The decision outlines the procedures for establishing committees, defines their responsibilities and operational mechanisms, and clarifies their relationship with regulatory authorities and management companies. This is expected to improve community management and encourage greater participation from property owners in maintaining and enhancing shared assets.

Decision No. (165) of 2025 addresses compensation structures in cases where purchasers breach contractual obligations under off-plan sales agreements.

It establishes defined compensation ratios based on project status and completion levels, while also outlining procedures and timelines for refunding outstanding amounts to purchasers following the cancellation and resale of units.

These measures aim to reduce disputes, improve transparency, and provide faster and more equitable resolution mechanisms for all parties involved.

Supporting a more transparent and resilient market

The introduction of these decisions reflects Abu Dhabi’s continued commitment to developing a robust and transparent real estate ecosystem. By enhancing regulatory clarity and strengthening governance frameworks, the emirate is reinforcing its attractiveness to both local and international investors.

The measures also contribute to improving market efficiency, reducing risk, and ensuring the long-term sustainability of real estate developments across the emirate.

As Abu Dhabi’s real estate sector continues to evolve, the adoption of integrated and adaptive regulatory frameworks remains central to supporting growth, innovation, and investor confidence.