Municipalities and Transport" Issues Regulatory Decisions to Enhance the Efficiency of Abu Dhabi’s Real Estate Sector"

Municipalities and Transport" Issues Regulatory Decisions to Enhance the Efficiency of Abu Dhabi’s Real Estate Sector"

The Department of Municipalities and Transport has issued a package of administrative regulatory decisions to implement the provisions of Law No. (3) of 2015 concerning the regulation of the real estate sector in the Emirate of Abu Dhabi, as amended by Law No. (2) of 2025. This step aims to enhance the efficiency of implementing relevant legislation and to reinforce the principles of transparency and governance in the real estate market, within a more flexible and clearer legislative framework aligned with global best practices in this field. The package includes four administrative decisions covering the mechanism and controls for disbursement from real estate project escrow accounts before reaching 20% project completion, the regulation of ownership, usage rights, and management of jointly owned properties and common areas, the approval of bylaws for owners’ committees, as well as the determination of percentages, procedures, and timelines for refunding buyers in canceled and resold units, in accordance with Article (3/17) of Law No. (3) of 2015 as amended by Law No. (2) of 2025 on regulating the real estate sector in Abu Dhabi.
 These decisions come as part of Abu Dhabi’s efforts to strengthen its position as a leading global investment hub in the real estate sector by developing a flexible and sustainable legislative environment that supports developers, protects investors’ rights, and keeps pace with future growth requirements, ensuring effective market governance and growth. They also contribute to improving the efficiency of law implementation and simplifying its understanding and application, in line with the rapid growth of the real estate sector in the emirate, thereby enhancing its competitiveness at both regional and international levels. The new package of decisions enhances the clarity of legal and contractual relationships among all stakeholders in the real estate market through a comprehensive regulatory framework that balances the interests of developers, investors, and owners.
 It defines the roles and responsibilities of developers, management companies, and owners’ committees, reinforcing role integration and supporting project sustainability, particularly in the management of common areas and strengthening the role of owners’ committees. The decisions also establish provisions that enable developers to execute projects efficiently while ensuring the protection of buyers’ rights and funds, in addition to introducing a flexible and fast mechanism to reduce disputes between developers and unit buyers, thereby enhancing the efficiency and diversity of the real estate market. In detail, Administrative Decision No. (24) of 2025, concerning the mechanism and controls for disbursement from real estate project escrow accounts before reaching 20% completion, focuses on regulating early disbursements through clear controls, including the provision of bank guarantees and approved cost estimates, ensuring the protection of buyers’ funds and preventing any misuse of escrow account funds.
 Administrative Decision No. (25) of 2025 addresses jointly owned property regulation through a comprehensive framework for managing properties, common areas, and facilities. It defines the roles and responsibilities between owners, developers, and management companies within a regulatory and supervisory system that strengthens the role of the Abu Dhabi Real Estate Centre, standardizes concepts and controls, enhances operational efficiency and sustainability, and ensures the long-term preservation of real estate asset quality. Administrative Decision No. (26) of 2025, regarding the approval of bylaws for owners’ committees, aims to regulate committee operations through a unified and clear system across the emirate. It defines the mechanisms for establishing owners’ associations, their responsibilities, procedures, and their relationship with regulatory authorities and management companies, contributing to improved community management and enhanced owner participation in project sustainability in line with global best practices. Administrative Decision No. (165) of 2025 regulates the compensation percentages due to developers in cases where buyers breach their obligations under off-plan sales contracts. It also defines the timelines and procedures for refunding buyers after unit cancellations and resale, based on fair percentages that consider both parties’ interests, project status, and completion rates, with transparent procedures ensuring the rights of all parties and providing a faster and more equitable mechanism for resolving such cases. Rashed Al Omaira, Director General of the Abu Dhabi Real Estate Centre, stated that issuing this package of executive and regulatory decisions represents an important step in developing the mechanisms for implementing Law No.
 (3) of 2015 and its amendments, through the adoption of flexible execution tools adaptable to market changes. This enhances regulatory efficiency, reinforces transparency and governance, supports investor confidence, and strengthens Abu Dhabi’s position as a leading real estate destination. He explained that the decisions provide a clear executive framework for several key provisions of the law, achieving balance in contractual relationships, enhancing the protection of all parties’ rights, and supporting the speed and efficiency of market procedures. The package also contributes to strengthening the integration of the real estate sector ecosystem by introducing regulatory and supervisory controls that support the role of the Abu Dhabi Real Estate Centre in overseeing the market and delivering integrated real estate services aligned with global best practices. It represents a qualitative shift in the mechanism of regulating and implementing certain provisions of the law through a model based on integrated, comprehensive, and transparent regulatory and executive decisions capable of keeping pace with rapid sector developments, thereby enhancing market efficiency, credibility, diversity, and transparency of procedures.
Reference: "البلديات والنقل" تصدر قرارات تنظيمية تعزز كفاءة القطاع العقاري بأبوظبي