Abu dhabi: The Department of Municipalities and Transport (DMT) has issued a package of administrative decisions to implement Law No. (3) of 2015 (as amended by Law 2 of 2025) concerning the Regulation of the Real Estate Sector in Abu Dhabi. The decisions aim to regulate mechanisms and controls for disbursement from real estate project escrow accounts prior to 20 percent project completion, manage property ownership rights, and oversee jointly owned properties and common facilities. They also involve approving bylaws governing owners' committees and defining compensation ratios, refund periods, and procedures for purchasers of canceled units.
According to Emirates News Agency, these decisions form part of Abu Dhabi's efforts to strengthen its position as an international investment hub in the real estate sector. They aim to develop a flexible legislative environment that supports real estate developers, protects investors' rights, and aligns with future growth requirements. This approach ensures effective market governance and safeguards investors' interests while reinforcing the market's competitiveness at both regional and international levels.
The decisions enhance the legal and contractual relationships among stakeholders in the real estate market. They provide a comprehensive regulatory framework that aligns the interests of developers, investors, and owners, defining the roles and responsibilities of developers, property management companies, and Owners' Committees. This contributes to an integrated and collaborative relationship that supports the sustainability of real estate projects, particularly in managing common facilities and the role of Owners' Committees.
Further, the decisions enable real estate developers to implement projects while protecting buyers' rights and safeguarding their funds. They introduce a flexible and efficient mechanism aimed at reducing disputes between developers and unit purchasers, enhancing the efficiency and diversity of the real estate market.
Decision No. (24) of 2025 focuses on regulating withdrawals from real estate project escrow accounts before achieving 20 percent project completion. It introduces clear controls linked to bank guarantees and approved cost estimates to safeguard purchasers' funds.
Decision No. (25) of 2025 addresses the regulation of jointly owned property by establishing a comprehensive framework for the management of real estate assets, common parts, and shared facilities. It defines the roles and responsibilities of owners, developers, and property management companies, enhancing operational efficiency and sustainability.
Decision No. (26) of 2025 regulates the operation of owners' committees through a unified bylaw, setting out mechanisms and procedures for establishing committees and enhancing the management of residential communities.
Additionally, Decision No. (165) of 2025 regulates compensation percentages due to developers in cases where purchasers breach contractual obligations. It establishes transparent procedures for refunds and compensation, ensuring fairness and providing faster, equitable resolving mechanisms.
Rashed Al Omaira, Director-General of ADREC, stated that these decisions enhance sector regulation efficiency and reinforce transparency and governance principles, supporting investor confidence and reinforcing Abu Dhabi's position as a leading real estate destination. They establish a clear executive framework ensuring balanced contractual relationships and support the speed and efficiency of market procedures.
This package strengthens the integration of the real estate regulatory ecosystem by introducing supervisory and regulatory controls supporting ADREC's role in overseeing the market. The decisions represent a qualitative advancement in regulation and implementation through an integrated, comprehensive, and transparent framework adaptable to the sector's evolving landscape, enhancing market efficiency, credibility, and transparency.