“By tightening controls, clarifying obligations and standardising oversight, Abu Dhabi is sending a clear message that sustainable real estate growth must go hand in hand with investor confidence.”
The Department of Municipalities and Transport has rolled out four new administrative decisions aimed at tightening oversight, clarifying rights and obligations, and supporting the next phase of growth in Abu Dhabi’s real estate sector.
Abu Dhabi has introduced a new package of regulatory measures to sharpen oversight of its real estate market, underscoring the emirate’s push to build a more transparent, balanced and investment-friendly property environment. The new measures were announced by the Department of Municipalities and Transport (DMT) as part of the implementation of Law No. (3) of 2015, as amended by Law No. (2) of 2025, governing the real estate sector in Abu Dhabi.
The latest decisions are intended to provide clearer executive mechanisms for applying the law while also responding to the rapid pace of market development. At their core, the measures are designed to improve transparency, governance and procedural efficiency, while also protecting the interests of developers, investors, owners and buyers. Officials said the framework reflects Abu Dhabi’s ambition to keep pace with international best practice and reinforce its standing as a leading destination for real estate investment.
The package comprises four administrative decisions covering key aspects of the real estate development and management cycle. Together, they address how funds can be released from project escrow accounts before a development reaches 20 per cent completion, how jointly owned properties and shared facilities should be regulated and managed, how owners’ committees will operate under a unified bylaw, and how compensation and refunds should be handled when buyers fail to meet obligations under off-plan sales agreements.
One of the most closely watched changes relates to escrow account disbursements. Under Decision No. (24) of 2025, withdrawals from real estate project escrow accounts before the project reaches the 20 per cent completion threshold will now be subject to clearly defined controls. These include requirements tied to bank guarantees and approved cost estimates. The objective is to ensure that buyer funds remain protected and that money deposited into escrow accounts is not used in an unregulated manner.
Another major element is Decision No. (25) of 2025, which focuses on jointly owned property. This decision lays out a fuller regulatory structure for the management of real estate assets, common areas and shared facilities. It also clarifies the responsibilities of owners, developers and property management companies, while strengthening the supervisory role of the Abu Dhabi Real Estate Centre (ADREC). The aim is not only to improve operational efficiency but also to help preserve the long-term quality and sustainability of real estate assets and ownership structures.
The reforms also place renewed emphasis on community-level governance. Decision No. (26) of 2025 adopts a unified bylaw for owners’ committees across the emirate, setting out how such committees are to be formed, what authority they will hold, and how they are expected to interact with public authorities and management companies. By standardising internal governance, the decision is expected to improve the management of residential communities and encourage stronger owner participation in the long-term sustainability of projects.
The fourth measure, Decision No. (165) of 2025), addresses one of the more sensitive areas of off-plan property transactions. It regulates the compensation payable to developers when purchasers breach their contractual commitments, while also setting timeframes and procedures for refunds when cancelled units are resold. The framework aims to ensure fair treatment by taking into account the project’s stage and level of completion, while introducing transparent procedures to reduce disputes and provide quicker, more equitable resolution mechanisms.
Officials said the broader goal of these decisions is to improve the legal and contractual balance within the market. By defining roles more clearly and establishing more structured procedures, the new framework is expected to reduce ambiguity, limit friction among stakeholders, and create a more predictable operating environment. This is particularly important in a market where sustained expansion requires both developer confidence and strong investor safeguards.
His Excellency Rashed Al Omaira, Director General of ADREC, said the package marks an important step in strengthening the implementation of the law through flexible regulatory tools that can respond to changing market conditions. He said the decisions would reinforce the principles of governance and transparency, improve the efficiency of sector regulation, support investor confidence and provide a clearer framework for contractual relationships across the market.
The latest move also fits into Abu Dhabi’s longer-term effort to develop a legislative environment that can support future growth while remaining practical for developers and protective of buyers. By combining tighter controls with greater clarity, the emirate is signalling that it wants its real estate sector to remain both competitive and credible at a regional and international level. With investor protection, project sustainability and regulatory certainty all in sharper focus, the new decisions could play an important role in shaping the next phase of the capital’s property market.
