ADM NEWS | Department of Municipalities and Transport issues regulatory decisions to enhance transparency and governance in real estate sector in Abu Dhabi The Department of Municipalities and Transport (DMT) announced the issuance of 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 enhance the effective implementation of the law, further strengthening transparency and governance within the emirate’s real estate market. The decisions establish a more flexible and clearly defined legislative framework that aligns with international best practices.
In addition, the decisions respond to the sector’s rapid growth ensuring the law is applied in accordance with well-defined regulatory requirements. The package comprises four administrative decisions addressing key stages across the development, regulation and management cycle of real estate development projects in the emirate.
The decisions include: regulating the mechanism and controls for disbursement from real estate project escrow accounts prior to 20 per cent project completion; regulating property ownership rights and the management of jointly owned properties and common facilities; approving the bylaws governing owners’ committees; defining compensation ratios, refund periods, and procedures for purchasers of cancelled units which are resold in accordance with Article (3/17) of Law No. (3) of 2015 (as amended by Law 2 of 2025) concerning the Regulation of the Real Estate Sector in Abu Dhabi.
These decisions form part of Abu Dhabi’s ongoing efforts to strengthen its position as an international investment hub in the real estate sector, by developing a flexible legislative environment that supports real estate developers, protects investors’ rights, and is in line with future growth requirements.
This approach ensures effective market governance and safeguards investors’ interests in parallel reinforcing the markets’ competitiveness at both the regional and international levels The decisions enhance the legal and contractual relationships among the various stakeholders in the real estate market by providing a comprehensive regulatory framework that ensures a balanced alignment of interests between developers, investors, and owners.
It defines the roles and responsibilities of developers, property management companies, and Owners’ Committees, contributing to the establishment of an integrated and collaborative relationship among the parties that supports the sustainability of real estate projects–particularly with respect to the management of common facilities and the role of Owners’ Committees.
Further, the decisions enable real estate developers to implement projects on the one hand, while protecting buyers’ rights and safeguarding their funds on the other. The decisions further 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, on the mechanism and controls for disbursements from real estate project escrow accounts prior to achieving 20 per cent project completion, focuses on regulating withdrawals from escrow accounts before the completion threshold stipulated under the Real Estate Sector Regulation Law.
This is achieved by introducing clear controls linked to the submission of bank guarantees and approved cost estimates, with the aim of safeguarding purchasers’ funds and preventing any unregulated use of monies deposited in project escrow accounts.
While Decision No. (25) of 2025 addresses the regulation of jointly owned property by establishing a comprehensive regulatory framework for the management of real estate assets, common parts and shared facilities.
The decision defines the respective roles and responsibilities of owners, developers, and property management companies, supported by a clear regulatory and supervisory framework that strengthens the role of The Abu Dhabi Real Estate Centre.
This ensures the harmonisation of concepts and controls, enhances operational efficiency and sustainability, and safeguards the quality of real estate assets and ownership structures over the long term. Decision No. (26) of 2025, on the adoption of the unified bylaw for Owners’ Committees, aims to regulate the operation of owners’ committees through clear and standardised internal bylaws applicable across the emirate.
The decision sets out the mechanisms and procedures for establishing owners’ committees, defines their competencies, operating mechanisms, and relationships with authorities and management companies, and seeks to improve the management of residential communities while enhancing owners’ participation in the sustainability of real estate projects in line with international best practices.
Additionally, Decision No. (165) of 2025 regulates the compensation percentages due to developers in cases where purchasers breach their contractual obligations under off-plan sales agreements, as well as the timeframes and procedures for refunds to purchasers following the cancellation and resale of units.
The decision adopts compensation ratios that ensure fairness between the parties taking account of the status of the project, level of completion, while stablishing transparent procedures that safeguard the rights of all parties providing a faster and more equitable resolving mechanisms.
His Excellency Rashed Al Omaira, Director General of 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.” This package strengthens the integration of the real estate regulatory ecosystem by introducing supervisory and regulatory controls that support ADREC’s role in overseeing the market and delivering integrated real estate services aligned with international best practices.
The decisions also represent a qualitative advancement in the regulation and implementation of the law, through the adoption of an integrated, comprehensive, and transparent framework of regulatory and executive decisions that is adaptable to the sector’s evolving landscape, which in turn enhances market efficiency, credibility, and transparency.
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