
Abu Dhabi: Real Estate Regulations Update
The Department of Municipalities and Transport (DMT) of Abu Dhabi recently announced updates to the regulatory framework governing the emirate’s real estate sector.
A key component of this update is the enhancement of regulatory mechanisms and the empowerment of the Abu Dhabi Real Estate Centre to supervise the sector. This involves establishing clear legal and contractual frameworks that balance relationships among various stakeholders and safeguard their rights.
The comprehensive legal framework has been designed to ensure the long-term sustainability of jointly owned properties and common areas within development projects. It regulates professions related to the real estate sector to guarantee effective market governance and protect investor interests. There is a new definition of real estate activities, encompassing development, sale, purchase, registration, evaluation, management, and operation, thereby standardising and enhancing transparency across the sector.
Significant changes include provisions allowing developers to terminate off-plan sale and purchase agreements unilaterally if buyers fail to meet obligations, provided procedural compliance is met to secure ADREC approval. This adjustment aims to mitigate disputes, improve market dynamism, and reduce investment risks by streamlining resolution processes outside of court or arbitration.
Furthermore, the concept of Owners’ Committees has replaced Owners’ Associations, with their governance subject to decisions from the DMT Chairman, focusing on advisory roles. Management companies are tasked with operational responsibilities, ensuring the sustainability and effective management of shared facilities and common areas.
For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.
You can also explore the legal landscape by subscribing to our Weekly Newsletter.
Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.