The Department of Municipalities and Transport (DMT) in Abu Dhabi has announced significant updates to the real estate sector in the emirate. This initiative aims to reinforce Abu Dhabi’s position as a global hub for real estate investment by fostering a flexible and sustainable legislative environment that supports developers and safeguards the rights of investors.

Credit: Economy Middle East

These updates are designed to improve the efficiency of regulatory mechanisms and empower the Abu Dhabi Real Estate Centre to effectively oversee the sector. Clear legal and contractual frameworks will be established to promote balanced relationships among developers, investors, and property owners. This new structure includes regulatory and supervisory mechanisms along with governance standards, ultimately enhancing the efficiency of the emirate’s real estate market, as reported by the Abu Dhabi Media Office.

A major aspect of the update is the introduction of a comprehensive legal framework intended to ensure the long-term sustainability of jointly owned properties and common areas within development projects. This framework also regulates various professions within the real estate sector, aiming to protect investor interests and promote effective market governance.

The update presents a new definition of real estate activities, which covers all facets of development, such as sale, purchase, registration, evaluation, management, and operation of real estate, among other related activities. This change will help manage all real estate professions and incorporate currently unregulated roles into a unified regulatory framework, thereby enhancing the sector’s quality, transparency, and attractiveness.

According to the update, developers now have the authority to unilaterally terminate off-plan sale and purchase agreements if a buyer does not fulfill their obligations. This termination is contingent upon the developer following specific procedures to obtain approval from the Abu Dhabi Real Estate Centre (ADREC). The amendment aims to eliminate the necessity for courts or arbitration, allowing for a more flexible and expedited mechanism that reduces potential disputes, enhances market efficiency, and mitigates investment risks.

Additionally, the update introduces the concept of Owners’ Committees, which will replace Owners’ Associations. The establishment and operation of these committees will be governed by decisions from the Chairman of the DMT, and their responsibilities will be limited to advisory and oversight roles. Specialized management companies will handle the operational management of jointly owned properties, ensuring a flexible approach to regulation and sustainability of shared facilities.

Finally, the update indicates that the Schedule of Violations and associated administrative fines will be determined by a resolution from the Chairman of the DMT, following the approval of the Abu Dhabi Executive Council.